Aviva switches back to IFRS

Aviva will today tell investors it will boost the amount of capital it generates by at least 30% to £1.3bn ($1.9bn) this year and will return £8bn over the next five years, the FT reports.

Pat Regan, chief financial officer, said the company would try to explain in much simpler terms how it makes money and explain cash and capital generation as Aviva attempts to combat an impression among analysts and investors that it is too broad and complicated.

Aviva will increase the emphasis on the statutory IFRS basis of its financial reporting over the unpopular embedded value type reporting. “It is fair to say we will de-emphasise MCEV,” Regan said. “We will still publish it and use it in our economic capital models, but we will increase the emphasis on the drivers of IFRS profits.”