Investors assail 'disgraceful' CGNU

CGNU chiefs needed all the silky selling skills of a top life insurance salesman today as shareholders attacked plans to change the company's name, slash the dividend and increase directors' pay.

The directors were branded disgraceful, appalling and indecent by shareholders, most of whom were more concerned about proposals to cut the dividend than by plans to change the insurer's name to Aviva. But there remained many who believed CGNU's new name sounded, as one put it, 'very, very similar to the bus company Arriva'.

Arriva shares the concerns and has complained to the National Association of Pension Funds, prompting the lobby group to recommend institutional shareholders abstain from this afternoon's vote on the matter. The result was due late today. 'Did this name change come from consultants and are they the same ones who changed the Post Office's name to Consignia?' one shareholder asked.

No consultant was used, said chief executive Richard Harvey, although he acknowledged the potential for confusion. 'It is a problem but one we will have to live with. There are barely enough words in the English language,' he said.

Harvey also stood by plans to cut this year's dividend by 40%.