Aviva speaks on acquisition plans

Earlier today we revealed Aviva’s group results which included a 2% rise in operating profit but a slump in Canada – and now we can shed more light on the company’s plans going forward.

Chief executive Mark Wilson spoke to the media and stated that the company is considering acquisitions – with Turkey and Poland the two countries seemingly highest on the agenda.

The company has plans to spend around £600 million (around CA$1.076 billion) on so-called “bolt-on” acquisitions, as well as £900 million on debt reduction.

In the call Wilson said purchases in “Poland, Turkey, anywhere we have existing markets,” were possible. “We have this pile of cash...it’s not burning a hole in our pocket, if we don’t spend it we will give it back,” he said.

According to a report by Reuters, this £600 million target is likely to include the £116 million purchase of Irish firm Friends First, from late last year.

In addition, the insurer revealed plans to return £500 million (around CA$897 million) to shareholders. The move is similar to that of other European companies, including Munich Re and Allianz, which have offered share buybacks as a way to deploy capital.

Overall, there has been a mixed reaction to Aviva’s results – with shares down 1.7% on the FTSE100 at 9am GMT, immediately after its statement was revealed.