Aviva plc (“Aviva”) announces that it will commence a share buy-back of its ordinary shares for up to a maximum aggregate consideration of £600 million.

As outlined in its recent 2017 results, Aviva has significant excess capital and has committed to deploy £2 billion of this in 2018. The deployment includes £900 million of debt reduction, £500 million for bolt-on acquisitions (c£100 million already committed to the acquisition of Friends First in Ireland) and a £600 million ordinary share buy-back. 

The dividend yield on Aviva shares currently stands at 5.2%*, and with the dividend expected to grow further, the Board believes a buy-back is a compelling use of Aviva’s excess capital.

Aviva has entered into an agreement with Citigroup Global Markets Ltd (“Citigroup”) to conduct the share buy-back programme on its behalf and to make trading decisions under the programme independently of Aviva. The programme will commence on 1 May 2018 and will end no later than 31 December 2018. Shares acquired by Citigroup under the agreement will be immediately sold on to Aviva and, to the extent permitted by law, such ordinary shares purchased will be cancelled.

Aviva has received regulatory approval for the buy-back from the PRA.

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_{Note: Any purchase of Aviva ordinary shares contemplated by this announcement will be executed in accordance with Aviva’s general authority to repurchase ordinary shares granted by its shareholders on 10 May 2017, EU Market Abuse Regulation (596/2014), and Chapter 12 of the Financial Conduct Authority’s Listing Rules.}

_{* Based on 2017 dividend per share of 27.4p, and the Aviva ordinary share price of 529p on 30.04.2018.}