Aviva’s (LON:AV.) Mark Wilson appears to be a shoot-from-hip (or lip) kinda guy – the sort we love here at Proactive Investors.
The first line from the chief executive’s obligatory quote, top of the annual results page, tells investors just exactly what their getting. And it’s good news (it’s good news, as The Donald would echo).
“Aviva's results are simple and clear cut: more operating profit, more capital, more cash, more dividend. And there is more to come.”
Indeed, the plan is to return excess cash to investors – although the pensions and insurance giant hasn’t said how it will do this yet, or indeed how much wull be funnelled back.
In the meantime, income investors can get their teeth into a 23.3p a share dividend, up 12% on the previous year. That means the business is yielding 4.3%, or roughly double the market’s best savings rate.
Operating profit growth mirrored the dividend increase and came it at just over £3bn for the year ended December 31. After tax earnings fell by around 22% is factored in the impact of changes to so-called Ogden rates governing large insurance pay outs.
The figures for 2016 are the culmination of a lot of hard work by Wilson who was parachuted in from Asian insurer AIA in 2012 (although he took on the role of CEO formally in January 2013).
In that time Aviva jettisoned its stake in Dutch insurer Delta Lloyd, exited Russia, the US and Malaysia as well as snapping up Friends Life for £5.6bn.
The aim was to streamline and refocus a business with a threadbare balance sheet and no real focus into a lean mean cash generating machine.
Over to you Mark: “Aviva's financial position has been transformed and a distinctly stronger balance sheet and excess capital give Aviva more options.
“We are now actively planning a capital return to our shareholders and debt reduction in 2017 and will invest further to grow our businesses.
“The numbers speak for themselves.”