Ireland: Aviva Ireland & AIB distribution agreement - statement

Aviva today announced that its Life and Pensions (Ark Life) distribution arrangement with AIB will not be renewed in its current format when it expires in 2012. Aviva is exploring the possibility of extending and continuing elements of the distribution and administration business during the separation process. Aviva will work closely with AIB over the coming months to agree the separation process and following that, employees currently supporting the Ark Life business will transfer to AIB or an agreed provider. There will be no impact for Ark Life customers.

Seán Egan, Aviva Ireland CEO stated: “AIB will continue to be an important partner through the distribution of our motor business and the partnership in our health business. Aviva has worked successfully with AIB for the last six years to provide Ark Life customers with quality service and products against a backdrop of difficult market conditions”.

Mr Egan added: “It is disappointing that after months of negotiations we were unable to reach commercial terms which we could both agree upon. However, we announced in October a clear strategy to be the undisputed market leading general, life and health insurer in Ireland and that remains our goal. We specifically want to strengthen our position in the Life & Pensions market. We are ideally positioned to do this by making full use of our global scale and capabilities.”

Commenting on Aviva’s future strategy Mr Egan said: “As we continue through the transition of our business our focus will remain on our employees and our customers. Our aim is to become the number one choice for brokers in Ireland by offering competitive pricing, compelling products and excellent service to all customers.”

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Grainne Mackin   
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Notes to editors:

• The five-year bancassurance distribution agreement between Aviva and AIB took effect in 2006.