Aviva boss to share his vision as profits set to fall 10pc

Executive chairman John McFarlane’s vision for Aviva – which has 4,500 staff in Yorkshire, including 1,700 in Sheffield – is likely to overshadow the embattled insurance giant’s half year results on Thursday. Aviva also has its Life business headquartered in York.

The City will want a progress update on Mr McFarlane’s far-reaching plan, which many analysts saw as a dig against former chief executive Andrew Moss’s record.

Mr McFarlane said a review of 58 divisions had identified 16 weak performers that would be sold or wound down, including the large-scale bulk annuities business in the UK.

The group’s UK business is expected to show a dip in profits, driven by a larger-than-expected increase in weather-related claims. It is also struggling with its high exposure to the troubled eurozone economies of Portugal, Italy, Ireland, Greece and Spain which have continued to hit the group.

The weaker performance will come despite a series of TV adverts starring actor Paul Whitehouse, in which he plays a variety of characters promoting a range of insurance products.

Former bank chief Mr McFarlane took over leadership in May when Mr Moss stood down following a shareholder revolt over executive pay and the group’s shares performance. He said his proposals would create “a leaner and more agile” business with a “less layered and bureaucratic management style”.

The company has already revealed some progress towards its new goals after selling the Czech, Hungarian and Romanian Life businesses as well as exciting the Taiwan insurance market.

Mr Cornes said any comment on a disposal of its US operation would be “taken well” as a sale will be joined by a “significant increase in economic capital”. Mr McFarlane is expected to discuss ways in which he hopes to tackle major shareholder concerns, including the group’s disappointing shares performance.

Meanwhile, another stellar performance in Asia on Friday will fuel speculation that insurance giant Prudential will uproot from the UK to the Far East.

The UK’s biggest insurer is expected to report a seven per cent hike in operating profits to £1.1bn in the first six months of 2012, with its Asian arm the star, up 17 per cent to £380m.