Ticker AV.

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Price Pence
As of 09:33 12 Dec 2019
Market cap. Pound sterling
15,719.69 million
As of 09:33 12 Dec 2019

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Aviva to sell its stake in Hong Kong joint venture

Aviva logo

Insurer Aviva is to sell its stake in its Hong Kong joint venture, Blue, to its partner Hillhouse Capital.

It is also considering the future of its businesses in Vietnam and Indonesia.

But it says it is retaining its businesses in Singapore and China "which support our strategy of meeting customers' saving and insurance needs. These are profitable businesses, delivering attractive growth and generating positive cash-flow".

It comes as the firm announces a restructuring of its business into five divisions: Investments, Savings & Retirement; UK Life; General Insurance; Europe Life; and Asia Life.

Aviva to retain Singapore and China businesses

Aviva logo

Insurance giant Aviva has said it is hanging on to its businesses in Singapore and China, amid speculation that the Singapore operations could be sold.

In a statement, Aviva said that a "thorough review" had "concluded that the best value for shareholders will be achieved by retaining the [Singapore] business".

It added that both the Singapore and China business units "delivered double digit operating profit growth in 2018 and are earning attractive returns".

However, the company said that it was "continuing to explore strategic options for its operations in Hong Kong, Vietnam and Indonesia".

Shares in Aviva fell 3.5% following the announcement, making them the biggest faller in the FTSE 100 index.

'Disbelief' over Aviva job cuts

The Aviva workforce in the UK will be shocked by the news that their employer plans to shed 1,800 roles globally over the course of the coming three years. The scale of this role reduction will be met with disbelief across the company. Unite have arranged urgent discussions with Aviva management in order to ascertain the rationale for cutting an already extremely stretched workforce. Unite has made it clear to management that the union will strongly challenge any attempt to make compulsory redundancies.

Andy CaseUnite Aviva officer

Aviva: 'Tough decision' to cut jobs

Aviva office
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Aviva says the cost-cutting exercise that will lead to 1,800 job cuts is "essential" to remain competitive.

"This means tough decisions and job losses which I do not take lightly," he said "We will do all we can to minimise redundancies and support our people through this," said the insurer's chief executive Maurice Tulloch

The firm plans to split its life and general insurance businesses, which it says will improve accountability.

"Aviva will look to ensure that redundancies are kept to a minimum wherever possible, for example through natural turnover," the firm said.

Aviva to cut 1,800 jobs

Aviva logo
Getty Images

Aviva has unveiled plans to cut 1,800 jobs as it tries to slash spending by £300m a year by 2022.

The insurer, which plans to split its life and general insurance businesses, employs 30,000 people.

Chief executive Maurice Tulloch, said the move was a "first step" in a plan to simplify the business and make it "more competitive and more commercial".

"I am also determined to crack Aviva's complexity, an issue which has held back our performance for too long."

Board changes at Aviva

Insurance company Aviva says Tom Stoddard will step down as chief financial officer and as a director of Aviva from 30 June 2019. He will remain with the Group until 31 December "to support an orderly transition".

Jason Windsor, currently chief financial officer of Aviva UK Insurance, becomes interim chief financial officer on 1 July 2019.

Maurice Tulloch, Aviva's chief executive, said: "Tom is a tremendous leader and has played a major role in delivering Aviva's financial turnaround, significantly strengthening the group's capital position. After five successful years at Aviva, he leaves with my best wishes and those of Aviva's board."

Mr Stoddard said "now time for me to clear the way for others to step up, as I consider new opportunities".

Aviva could split

Aviva logo

Aviva is preparing to unveil a big shake-up of its UK business next week, as new chief executive Maurice Tulloch starts to make his mark on the insurance group.

That's according to the Financial Times which says observers said one option was to split the UK business — Aviva’s largest operation — into two parts. One would contain the life insurance division, the other would be non-life insurance, such as home and car cover.

Mr Tulloch was appointed in March and Aviva is due to update investors on 6 June.