RBC Capital Markets lifts price target on Aviva

"Given its strong capital generation, we expect that Aviva can balance enhanced shareholder returns and reinvestment into growth - an area that has historically been a key concern for investors," the bank said.

"Our analysis of Aviva's balance sheet indicates that not only can Aviva undertake buybacks of up to £450m per annum, it can generate growth to support a long-term dividend per share compound annual growth rate of 4% per annum."

RBC, which reiterated its ‘outperform’ rating on the shares, said this results in Aviva offering a sector-leading cumulative total capital return yield of 33% over 2022E-24E.

"Despite this, Aviva's dividend yield is 14% higher than its historical average," it added.

At 0940 BST, the shares were up 2.6% at 436.40p.