No redundancy decision following Aviva shake-up

There will be no immediate impact on jobs following the decision by '‹insurance and pensions giant Aviva '‹to'‹ merg'‹e its UK insurance businesses as part of '‹plans to expand its UK operations.
By The Newsroom
Published 19th Jan 2017, 15:52 BST
Updated 19th Jan 2017, 15:57 BST
Aviva offers insurance to one in four UK households and has 33 million customers across 16 markets worldwideAviva offers insurance to one in four UK households and has 33 million customers across 16 markets worldwide
Aviva offers insurance to one in four UK households and has 33 million customers across 16 markets worldwide

A spokeswoman for Aviva, which employs 2,000 people at its ​life​ and general ​insurance ​business ​in ​York​ and 1,500 at its life and health insurance operation in​ Sheffield, said: "There is no news on jobs today."

It is not clear yet whether job losses may result from the shake-up as no decisions have been made yet.

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The group said Andy Briggs will be promoted from head of its UK life business to chief executive of the merged insurance division, covering life, general and health insurance.

​The restructure will also see Maurice Tulloch​, currently executive chairman of global general insurance​, become chief executive of international insurance, heading up the group's insurance operations in France, Canada, Ireland, Spain, Italy, Poland, Turkey and India.

The firm's European boss, David McMillan, who is also chairman of its global health insurance division, has decided to quit as a result of the changes, Aviva added.

Aviva Investors, Aviva Asia and the group's digital businesses will remain unchanged under the overhaul.

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The moves come as Aviva is making a digital push to offer a range of life and general insurance products online.

It has also been pulling out of some overseas markets in recent years.

Group chief executive Mark Wilson ​said ​Aviva wants to grow in the UK.

He said: "We see significant opportunities to differentiate our business in the UK post-Brexit. We like the UK, we are investing in the UK, and we are growing in the UK.

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"Our priorities are to continue to deepen our position in our home UK market with our 16 million customers, and to continue to grow in our core international markets to diversify and strengthen Aviva."

​Aviva's ​life business has sites in York,​ Sheffield​, Norwich and​​ ​Bristol​ and ​​Aviva's general insurance division has major call centres in ​York, ​Norwich and Perth​.​

The health insurance arm has call centres in​ Sheffield​ and ​Eastleigh​.​​

Analysts at JP Morgan Cazenove said ​in a note: "We see this as positive​ ​news and it is in line with Aviva's aim as laid out at the 2016 investor day​ ​to restructure its current businesses.

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​"Aviva is bringing​ ​the entire UK insurance business (life, health and non-life) under Andy​ ​Briggs, who is currently the CEO of UK and Ireland Life. We note that​ ​Andy, who was the CEO of ​Friends Life before it got integrated with Aviva, is​ ​very well regarded in the market and we see this as positive news.

​"​Maurice has done well in UK non-life business after​ ​transforming Aviva’s Canadian business and we believe that this move​ ​could see continuing restructuring of international operations that Aviva​ ​laid out at its investor day last year.

​"Post the F​riends Life​ integration and with​ ​strong Solvency II capital, we believe that Aviva has the potential to​ ​become a growth stock in the UK."

Mr Briggs has more than 25 years of experience as a senior executive in the insurance industry, having also formerly acted as chief executive of Scottish Widows, headed Lloyds Banking Group's life business and led Prudential's retirement income division.

Aviva offers insurance to one in four UK households and has 33 million customers across 16 markets worldwide.

Related topics:AvivaYorkSheffield