CGNU slashes dividend by 40%
12 April 2012
CGNU, Britain's largest insurer, is to save £350m by cutting its annual dividend payout 40% from 2002.
Chief Executive Richard Harvey said CGNU's total dividend costs would decline to around £550m from around £900m now.
The group would invest the extra money in growing its life and pensions business in the UK and continental Europe, Harvey said.
He also said the outlook for sales volumes was 'excellent', but margins on long-term savings business could decline further in the UK this year due to the higher proportion of lower margin pensions sales.
