General Accident PLC Statement on Preference Shares* (7184I)
23 Marzo 2018 - 8:01AM
UK Regulatory
TIDMGACA
RNS Number : 7184I
General Accident PLC
23 March 2018
23 March 2018
This document includes inside information
Statement on Aviva plc and General Accident plc preference
shares
Since the full year results announcement on 8 March 2018, Aviva
plc ("Aviva") has heard a wide range of views on its preference
shares*, has spoken to a large number of investors and has received
strong feedback and criticism.
As a result Aviva has listened. Aviva announces that it has
decided to take no action to cancel its preference shares.
Under current regulation the preference shares will no longer
count as regulatory capital in 2026. Aviva will work towards
obtaining regulatory approval for the preference shares, or a
suitable substitute, to qualify as capital from 2026 onwards. If as
we approach 2026 Aviva needs to reconsider this position, it will
do so after taking into account the fair market value of the
preference shares at that time.
On 8 March 2018 Aviva stated it has the ability to cancel the
preference shares at par value, having received clear legal advice.
The review of the preference shares was initiated as a result of
Aviva's duty to examine what is right for the business, balancing
the interests of ordinary shareholders and preference shareholders.
Aviva needed to address the issue of the preference shares given
regulatory capital considerations and their cost.
Aviva is in a strong financial position and still plans to
deploy GBP3 billion of excess cash in 2018 and 2019 to reduce
hybrid debt, fund bolt-on acquisitions and buy back ordinary
shares.
Mark Wilson, Group Chief Executive Officer of Aviva plc,
said:
"I am very aware that Aviva is in a position of trust with our
customers and investors. To maintain that trust it is critical that
we listen to and act on feedback. The reputation of Aviva, and the
trust people have in us, is paramount. Our announcement today means
that preference shareholders can rest secure in their holdings.
The Board and I have a duty to consider not just the financial
implications of our actions. We must consider the impact to Aviva's
wider reputation. I hope our decision today goes some way to
restoring that trust."
*Preference shares issued by Aviva plc and General Accident
plc
-ends-
Enquiries:
Media:
Nigel Prideaux +44 (0)20 7662 0215
Andrew Reid +44 (0)20 7662 3131
Sarah Swailes +44 (0)20 7662 6700
Analysts:
Chris Esson +44 (0)20 7662 8115
Diane Michelberger +44 (0)20 7662 0911
Notes to editors:
-- Aviva provides life insurance, general insurance, health
insurance and asset management to 33 million customers.
-- In the UK we are the leading insurer serving one in every
four households and have strong businesses in selected markets in
Europe, Asia and Canada. Our shares are listed on the London Stock
Exchange and we are a member of the FTSE100 index.
-- Aviva's asset management business, Aviva Investors, provides
asset management services to both Aviva and external clients, and
currently manages over GBP350 billion in assets. Total group assets
under management at Aviva group are GBP490 billion.
-- Aviva helps people save for the future and manage the risks
of everyday life; we paid out GBP34.6 billion in benefits and
claims in 2017.
-- By serving our customers well, we are building a business
which is strong and sustainable, which our people are proud to work
for, and which makes a positive contribution to society.
-- The Aviva newsroom at www.aviva.com/newsroom includes links
to our image library, research reports and our news release
archive.
-- For an introduction to what we do and how we do it, please click here www.aviva.com/about-us
-- Follow us on twitter: www.twitter.com/avivaplc/
-- Follow us on LinkedIn: www.linkedin.com/company/aviva-plc
-- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
-- We have a Globelynx system for broadcast interviews. Please
contact the Press Officer noted above if you would like to make a
booking.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 23, 2018 03:01 ET (07:01 GMT)
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