Aviva reiterates confidence post-Brexit, targets 50pc dividend payout

In the wake of its participation in UK property fund wobble earlier in the week, Aviva looked to reassure the market with a trading update on Wednesday that hinted at further shareholder returns.

Saying it was too soon to judge the impact of Brexit on the company and the value of its holdings, the insurer highlighted a number of new strategic objectives, including mid-single digit growth in operating profits in the medium term and a dividend payout ratio of 50% of operating earnings per share in 2017.

Aviva said it aimed for cash generation to reach £7bn in cumulative business unit remittances over the period from 2016 to 2018.

"Aviva's fundamentals are sound," assured chief executive Mark Wilson. "Our balance sheet is strong and resilient and we are a simpler, focused group with excellent franchises. This is a strong foundation from which to grow profits, cash-flow and dividends over the coming years.

On the fallout from the 24 June referendum decision to leave the European Union, which led to Aviva following Standard Life and M&G in stopping redemptions from their UK property funds, he said management were "confident we can continue to grow" even though it was "too early to quantify the precise impact".

He added that the UK remained an attractive market, with Aviva possessing strong franchises and brand.

"As the UK's leading composite insurer, Aviva has advantages in terms of cost, capital and customer engagement. We expect the UK to deliver cash-flow and growth for our shareholders."