Aviva backs down on plans to cancel preference shares

Following investor ‘criticism’

clock • 2 min read

Insurance giant Aviva is set to scrap plans to cancel £450m of high-yielding preference shares at par value, following "strong feedback and criticism" from investors.

Aviva announced its intention to cancel the preference shares on 8 March 2018, following legal advice owing to regulatory requirements, which mean preference shares will no longer count as regulatory capital in 2026. The firm said in a statement it will work towards obtaining approval for the preference shares "or a suitable substitute" to qualify as capital from 2026.   It said: "If, as we approach 2026, Aviva needs to reconsider this position, it will do so after taking into account the fair market value of the preference shares at that time." Aviva to take majority stake in robo...

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