Fears of dividend cut and budget tax changes blamed for fall
Norwich union owner Aviva saw it shares fall 20.5p, after HSBC analyst Kailesh Mistry warned dividends could be halved this year and others feared budget tax changes to pension would hurt the company.
The Times said the fall was due to the HSBC warning of a dividend cut “as management seeks to strike a balance between dividends and strengthening its capital buffer”.
The Telegraph and Guardian said it was concerns that Chancellor Alistair Darling will scrap the higher rate of tax (HRT) relief for pension contributions, which would prove damaging to the industry.
The Association of British Insurers (ABI) said such a withdrawal "would be an entirely wrong and short-sighted response to the huge challenges facing the government".
