£385m deal

Aviva swoops on adviser, offers 2-year dividend outlook

Amanda Blanc
Amanda Blanc: simpler, leaner business

Aviva announced the acquisition of Succession Wealth in a £385 million cash deal in the latest move to consolidate the advice market.

Succession Wealth has about 200 planners advising on £9.5bn of assets delivering advice to 19,000 clients.

Aviva said the deal means it will have the capability to offer advice to its six million pensions and savings customers without an existing adviser.

Aviva chief executive Amanda Blanc said: “The acquisition of Succession Wealth boosts Aviva’s presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva’s ability to offer high quality financial advice to millions of our customers.”

The announcement came alongside year-end figures showing “significant strategic progress” in a year of restructuring.

The group, which offloaded eight non-core businesses over the period, said it was able to announce guidance on dividends for the next two years with a final dividend per share for 2021 of 14.7p (2020: 14.00p), making a total dividend for the year up 5% to 22.05p (2020: 21.00p).

For 2022 it estimates being able to pay a dividend of approximately £870m. Following the proposed B Share Scheme and share consolidation announced today, this would be equivalent to an illustrative per share amount of c.31.5p, an increase of c.40% on 2021.

For 2023 its estimates paying a dividend of approximately £915m, growth of 5% giving an illustrative 33p per share.

Thereafter it expects low-to-mid single digit growth in dividend per share. These cash dividends represent an attractive payout level from long-term, sustainable cash and capital, underpinned by our upgraded cash remittance target, said the company.

Surplus capital above target levels is available for investment in the business or return to shareholders over time

Adjusted operating profits for the year fell to £1.63 billion for year from £1.8bn.

Ms Blanc said: “Our financial position is strengthened and Aviva is now a much simpler, leaner business, focused on our core markets in the UK, Ireland and Canada.”

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