Aviva CEO: Sees GBP33B Cash Flow From Life Ops Over 20 Years

2nd Jul 2010 11:00

By Vladimir Guevarra Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. insurer Aviva PLC (AV.LN) said Friday it expects GBP33 billion of cash flow from its life insurance business over the next 20 years. "Based on the contracts we have in place today, GBP33 billion of undiscounted cash flows and capital will be generated from our life business alone over the next 20 years," Chief Executive Andrew Moss told an analyst briefing. "We have choice as to how we deploy this capital we generate--whether it's paying dividends, reinvesting in new business or...in the worst case, it's there on top of the capital we have in the balance sheet to absorb any bad news in terms of losses," he said. "We continue to sharpen our focus on disciplined capital allocation, that is to fund profitable growth. We're reinvesting on new business, with good internal rates of return, a minimum of 12% in our major markets. That's a good return in the post-crisis world," he said. -By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0) 2078429486, [email protected] (END) Dow Jones Newswires July 02, 2010 06:00 ET (10:00 GMT)