Investor pressure sees Aviva row back on share cancellation

By The Newsroom
Published 23rd Mar 2018, 11:57 BST
Updated 23rd Mar 2018, 13:00 BST
Group chief executive of Aviva, Mark Wilson Photo: John Stillwell/PA WireGroup chief executive of Aviva, Mark Wilson Photo: John Stillwell/PA Wire
Group chief executive of Aviva, Mark Wilson Photo: John Stillwell/PA Wire
Insurance giant Aviva has succumbed to shareholder pressure and rowed back on its controversial proposal to cancel £450m worth of preference shares.

Earlier this month, Aviva said it would cancel the shares at par value as part of a plan to return £500m to shareholders.

But on Friday the company said it had spoken to a large number of investors and received “strong feedback and criticism”.

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It added: “As a result, Aviva has listened. Aviva announces that it has decided to take no action to cancel its preference shares.”

The initial plan to cancel the shares, which pay high fixed dividends, received criticism from investors and the Financial Conduct Authority.