LONDON (Reuters) – Activist fund Cevian Capital said on Tuesday it had accumulated a 4.95% stake in Aviva and said it believed the British insurer should be able to return £ 5bn of capital in 2022.
“Aviva has been very poorly managed for several years and its core business has been hampered by high costs and a chain of bad strategic decisions,” Christer Gardell, Cevian partner and co-founder, said in a statement.
According to the fund, Aviva’s value is expected to reach 800 pence per share within three years and the insurer is expected to more than double its dividend to 45 pence, Cevian said.
At around 0750 GMT, Aviva was taking 2.65% to 421.50 pence.
Aviva said last month it had raised £ 7.5 billion through several divestments and said shareholders would receive their share without giving details on the amounts being considered.
Among these disposals is that of its French subsidiary sold in February for 3.2 billion euros to Aéma Groupe.
“Aviva has made significant strategic progress over the past 11 months and we remain fully committed to improving our performance,” a spokesperson said in a statement to Reuters via email.
“We are in regular contact with investors and we welcome their reflection, which brings us closer to our objective of restoring value to our shareholders over the long term.”
(Carolyn Cohn; French version Nicolas Delame, edited by Blandine Hénault)
Source: Challenges en temps réel : accueil by www.challenges.fr.
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