Aviva slashes dividend as it returns to profit

Aviva has made a profit of over £700m in the first half of the year but has slashed its dividend to just 9p.

General insurance and existing life business were the main drivers of the turnaround, accounting for around 80% of operating profits. Aviva's interim statement revealed it made an after-tax profit of £747m in the first six months of 2009. Operating profit fell 14% to just over £1bn. However, the firm has cut its interim dividend by 31% to 9p per share. The board says ongoing economic instability, a falling operating profit are key factors behind its decision to cut dividends. However, it also wants additional financial flexibility in order to take advantage of market opportunitie...