Aviva reportedly reviewing 1 billion pound policy payout

LONDON (Reuters) - Aviva (AV.L) is reconsidering the terms of a planned 1 billion pound payout to with-profit policyholders, according to the Times.

The newspaper said the insurer would tell the stock market next week that it remains committed to the deal but that it will say it will have to revisit the plan if stock market turbulence continues.

The Times said Aviva was considering whether to trim or delay the payment but said it was highly unlikely to scrap it altogether.

Aviva said in July it would make a 1 billion pound offer to policyholders to reattribute the cash -- money built up in the funds over the years above what is needed to meet policyholder commitments.

(Reporting by Kate Holton; Editing by Gary Hill)