Aviva starting to “sparkle like a diamond”

Aviva chief Mark Wilson said the insurer was starting to “sparkle like a diamond” after delivering good results and the promise of a cash windfall for investors.

“It’s a bit like Aviva was this diamond a long time ago and we have recut it and now it’s starting to shine a little bit,” he said.

The FTSE 100 giant said it would give back money to shareholders, preferably through a share buyback, during 2017 and pay down more debt.

The group, which sponsors Premiership rugby union, generated “exceptionally strong” capital of £3.5 billion last year and Wilson said it was a “high-quality problem” to have to decide what to do with the money.

Shares rose 6.7% adding 34.08p to 545.08p as investors welcomed the cash return plan.

Operating profit rose 12% to exceed £3 billion. On a statutory basis, pre-tax profits fell 22% to £859 million because of a government shake-up of injury payout rates.