Aviva jacks up dividend for army of small investors

Aviva boss Mark Wilson says his plan to disrupt the insurance industry has “developed a bit of rhythm” as he unveiled a fourth straight year of growth.

Wilson, chief executive since 2013, reported an 11% rise in operating profit to £1.46 billion for the last six months.

That lets Aviva ramp up the dividend by 13% to 8.4p, good news for 500,000 small shareholders who hold the stock, typically after the demutualisation of the old Norwich Union.

Wilson says the market overall is “economically subdued ” but Aviva — which sponsors Premiership rugby, right — is on the up.

His “ask it never” sales proposition offers customers products without intrusive questioning, and digital registrations are up from 4.7 million to 6 million.

He said: “In slightly uncertain times insurance plays a more important role in people’s lives.”

City analysts note Aviva generated £1.1 billion of capital this year, raising the question of what it does with the money.

Wilson wants to pay down some of Aviva’s £10 billion debt and pursue organic growth, but takeovers aren’t ruled out. Shares were steady at 541p, valuing Aviva at £22 billion.