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Capital return for Aviva shareholders


Over the last year we've focused aviva's businesses to our core markets in the uk ireland and canada we've sold eight businesses and this generated around 7.5 billion pounds of excess capital in this video we'll briefly explain how we're going to return 4.75 billion pounds to our ordinary shareholders there are two ways we're doing that Through a share buyback program that will finish in march and by giving 3.75 billion pounds to ordinary shareholders through a b share scheme which we'll explain shortly let's take these one at a time firstly let's look at the share buyback a share buyback means that aviva uses its own funds to buy aviva shares those shares are then cancelled which reduces the overall number of shares in Aviva that means each share represents a slightly larger proportion of the company we've nearly finished buying back one billion pounds worth of aviva shares in total this started in august 2021 and will end in march 2022 the second way we're returning excess capital to our shareholders is by giving 3.75 billion pounds to ordinary Shareholders through a b share scheme the way we'll do this is that subject to shareholder approval every ordinary shareholder will receive one temporary share known as a b share for each aviva ordinary share they hold or then pay a fixed amount to redeem each b share you'll find the exact amount you can expect to receive in a document outlining the plans known as the circular which will be published on or Around the 4th of april 2022 as an illustrative example if you had 100 ordinary aviva shares at the relevant record date you'd receive 100 more b shares then we'd give you roughly 100 pounds in exchange for those extra 100 b shares if approved by shareholders the scheme will take place in may 2022 once the scheme has been approved at the general meeting in may as a shareholder you don't need to do anything Just make sure your address and bank details are correct to avoid any delays in receiving your payment we'd also encourage you to vote at the general meeting when ordinary shareholders are asked to approve the plan the b share scheme is an efficient and quick way to return capital to ordinary shareholders finally to mitigate any fluctuation in the price of aviva shares as we return The capital to shareholders we're planning something called a share consolidation as an illustrative example going forward you will hold approximately 75 new ordinary shares for 100 ordinary shares you currently hold the ratio for this consolidation will be set out in the circular this means that the total number of aviva ordinary shares in issue will be less the reduction in the number of shares following the consolidation reflects how Much cash will be returned to shareholders through the b share scheme again full details can be found in the circular after this share consolidation as an ordinary shareholder you'll see your number of shares reduce but you'll still own the same percentage of aviva as you did before to find out more information and read the faqs go online to aviva.com

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