Aviva disappoints on dividend

AVIVA dashed hopes that cash from two major disposals in recent months would be used to prop up its dividend.

The insurance giant said it expects to pay out around 21p for the full year, an increase on last year, but a reduction from the 30p per share paid in 2018.

Aviva sold one of its Italian arms this week for around £355m, and its Singapore business in September for £1.6bn.

Chief executive Amanda Blanc, who replaced Maurice Tulloch in the summer, has set out a strategy to exit rapidly businesses that were too small around the world so Aviva could focus on the UK, Canada and Ireland where it makes most profit.

Alan Devlin, analyst at Shore Capital Markets, said: ‘The market might have hoped the reduction was somewhat lower due to the redeployment of the proceeds from the asset sales.’