Capital surplus up from £2.5bn to £2.8bn and £400m to come
Aviva chief executive Andrew Moss says the firm’s regulatory capital cushion is getting stronger and the group is not planning any further disposals, Reuters reports.
Aviva said in May that stronger financial markets had lifted its regulatory capital surplus to £2.8bn, from £2.5bn at the end of March.
Moss said: "At the moment, I think we're content with the move that we've made in Australia." The deal will add £400m to Aviva's regulatory capital buffer.
Capital growth
Moss said that would reinforce a steady improvement in the Aviva's capital position since March, when worries over the impact of dividend commitments and rising bond defaults wiped a third off the group's share price in a single day.
Moss said: "Those concerns were clearly misplaced, and I think we've proved that. The capital position of the group is very strong and it's been getting stronger."
Resolution approach?
Moss declined to comment on whether the group had received an approach from Resolution (RSL.L), the acquisitions vehicle founded by entrepreneur Clive Cowdery.
Analysts at Shore Capital last week named Aviva as a potential target for Resolution, set up last year to buy and consolidate life insurers and asset managers.
Aviva shares closed at 4.5% higher at 321.75 pence on Wednesday, valuing the company at about £7bn pounds.
