Aviva plc investor update

Aviva plc (Aviva) will today host a presentation for analysts and investors.

Chief Executive Officer, Maurice Tulloch, will provide an update on progress since his appointment in March 2019 and will highlight the following key points:

  • Aviva’s life and general insurance businesses in the UK will be managed separately, with the digital direct business integrated into UK General Insurance. This will enable stronger accountability and greater management focus on the UK’s leading life and general insurance businesses.
  • Angela Darlington* is appointed interim Chief Executive Officer of UK Life and Colm Holmes* is appointed Chief Executive Officer of General Insurance.
  • Aviva intends to reduce expenses by £300 million per annum by 2022, net of inflation, at constant currency. Cost savings will be achieved through lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies. This will involve approximately 1,800 role reductions across the group over the next three years, out of a total workforce of around 30,000. Aviva will look to ensure that redundancies are kept to a minimum wherever possible, for example through natural turnover. Aviva has engaged with Unite and our employee representative bodies and will continue to consult on specific proposals.
  • Aviva reiterates its commitment to a progressive dividend policy and debt reduction of at least £1.5 billion.
  • Year-to-date trading is broadly consistent with 2018: weaker performance in savings and asset management arising from lower investment markets have been partly offset by growth in Europe and Asia together with progress on our turnaround in Canada. UK longevity assumptions will be assessed in the second half of 2019.

Maurice Tulloch, Chief Executive Officer, said:

“Today is the first step in our plan to make Aviva simpler, more competitive and more commercial. We have strong foundations: excellent distribution, world class insurance expertise, and our balance sheet is robust.

“But there are also clear opportunities to improve. Reducing Aviva’s costs is essential to remain competitive and this means tough decisions and job losses which I do not take lightly. We will do all we can to minimise redundancies and support our people through this.

 “I am also determined to crack Aviva’s complexity, an issue which has held back our performance for too long. Today’s changes will begin to reduce complexity, cost, and duplication, enabling Aviva to be better at serving our customers and delivering stronger results for our shareholders.

“The sustainability and security of our dividend is paramount. We are focused on improving our performance to grow capital generation and cash-flow.

“On 20 November, we will host a capital markets day that will update on our future strategy and targets.”

Download the presentation (PDF 2.2MB)

* Subject to regulatory approval

- Ends -

Enquiries

Media

Nigel Prideaux
+44 (0)20 7662 0215

Andrew Reid
+44 (0)20 7662 3131

Liz Kennett
+44 (0)7800 692 675

Sarah Swailes
+44 (0)7800 694 859

Analysts

Chris Esson
+44 (0)20 7662 8115

Diane Michelberger
+44 (0)20 7662 0911

Notes to editors:

  • We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
  • We help our 19.2 million (as at 31 December 2023) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers. 
  • In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
  • Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
  • As at 31 December 2023, total Group assets under management at Aviva Group were £376 billion and our estimated Solvency II shareholder capital surplus was £8.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
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