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...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
