Aviva builds up defences against crisis

Insurance giant Aviva today said it had stepped up its own protection against further falls in stock markets. It said that it had taken extra hedge positions in order to counter anything up to a 40% fall in share prices.

The move follows suggestions that the group's surplus capital had been eroded since the end of June.

In fact, it said today, its surplus regulatory capital has risen from £1.8 billion to £1.9 billion in the last three months.

Chief executive Andrew Moss said: "We are pleased to confirm that in the face of recent market turmoil, Aviva's capital position remains strong."