Aviva shares drop after the insurance firm makes cuts

The company Aviva is to cut its total dividend to 19 pence

15:52 07 March 2013

The large insurance firm Aviva has decreased its total dividend. Now, shareholders will be open to 19pence per share. This means there will be a 7pence drop from last year, as shares were valued at 26pence for 2012.

The announcement that the group will be making cuts comes following their recent results. Aviva reported a loss of £3billion after tax for 12 months.

 

Chief Executive of Aviva Mark Wilson admitted it was a hard decision to call for the cut but that it was needed in order to offer stability to individuals who own shares. Reportedly, Mr. Wilson did say however, that the firm aims to up the dividend in the future.

 

He told The Telegraph: “The £3bn loss after tax is driven principally by writedowns we have previously announced due to the agreed sale of our US business.”

 

The news comes as the British company will look to improve business following their last set of figures.

 

He added: “2012 was a year of transition at Aviva. There has been solid progress against the turnaround plan set out last year.”

 

Aviva, or Aviva PLC, has its headquarters based in London. It has customers around the world, supposedly in over 20 countries. The firm provides many insurance policies to customers in Britain, including life insurance as well as pensions.