As outlined in its recent 2017 results, the company says it has “significant” excess capital and has committed to use £2bn of it this year.

The deployment includes £900m of debt reduction, £500m for bolt-on acquisitions (circa £100m already committed to the acquisition of Friends First in Ireland) and a £600m ordinary share buy-back.

The dividend yield on Aviva shares currently stands at 5.2%, and with the dividend expected to grow further, the firm believes a buy-back is a “compelling use” of Aviva's excess capital.

Aviva has entered into an agreement with Citigroup to conduct the share buy-back programme on its behalf and to make trading decisions under the programme independently of Aviva.

The programme will commence today and will end no later than 31 December.

Shares acquired by Citigroup under the agreement will be immediately sold on to Aviva and, to the extent permitted by law, such ordinary shares purchased will be cancelled.

Aviva has received regulatory approval for the buy-back from the PRA.

Mark Wilson, group chief executive, said: “Aviva has significant surplus cash and capital and we are deploying £2bn productively in 2018.

“The £600 million buy-back, together with our plan to repay £900m of expensive debt maturing this year and invest in bolt-on acquisitions, will grow Aviva's earnings, strengthen cashflow and improve debt ratios.”