Aviva reverses dividend decision due to COVID-19 disruption

Insurance specialist Aviva has changed its decision to pay the 2019 final dividend to shareholders this summer due to the COVID-19 outbreak.

The group’s board of directors has agreed to withdraw its recommendation to pay the dividend to ordinary shareholders in June of this year as a result of the disruption caused by the coronavirus pandemic.

The group stressed that it remains “well capitalised with strong liquidity” and that the extended retention of the final dividend will increase the group’s estimated capital ratio by around 7 per cent to approximately 182 per cent.

In a statement this morning, Aviva commented: “It remains too early to quantify the impact of COVID-19 on claims expenses in our life and general insurance businesses, and the potential effect of capital markets and economic trends on our results.

“Given the change in the economic outlook, we are reviewing all material discretionary and project expenditure.

“We intend to provide an operational update for investors in the second half of May.”