Aviva boasts strong capital cushion

by David Masters

Story link: Aviva boasts strong capital cushion

Aviva’s regulatory capital cushion is strengthening, chief executive Andrew Moss said Wednesday, adding that the group is not planning any further disposals.

More stable financial markets have lifted the insurer’s capital surplus to £2.8 billion, up from £2.5 billion at the end of March.

“The capital position of the group is very strong and it’s been getting stronger,” Moss said.

The company raised a further £400 million selling Aviva Australia to National Australia Bank in June.

With its capital position bolstered, the firm is not planning any additional disposals in the near future.

“At the moment, I think we’re content with the move that we’ve made in Australia,” Moss said,

In March, a third was wiped off the value of Aviva’s shares in a single day over concerns about the impact of dividend commitments on Aviva’s capital buffer.

“Those concerns were clearly misplaced, and I think we’ve proved that,” Moss said.

Shares in Aviva have risen 9.3% this week, and 24.7% in the past three months.