Insurance firm Aviva will make approximately 1,800 redundancies across the group over the next three years, out of a total workforce of around 30,000.
It intends to reduce expenses by £300m 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.
Aviva has engaged with Unite and our employee representative bodies and will continue to consult on specific proposals. On 20 November it will update on its future strategy and targets.
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.”
Aviva’s life and general insurance businesses in the UK will be managed separately, with the digital direct business integrated into UK general insurance. Aviva said this will enable stronger accountability and greater management focus on the UK’s leading life and general insurance businesses.
Angela Darlington has been promoted from group chief risk officer to interim chief executive officer of UK Life and Colm Holmes, president and chief executive of Aviva Canada, has been appointed as chief executive officer of general insurance.
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 2019 to support an orderly transition.
Jason Windsor, currently chief financial officer of Aviva UK Insurance, will become interim chief financial officer on 1 July 2019.
Windsor joined Aviva in 2010 and has extensive experience of the group, including as chief capital and investments officer, and as a member of the group executive. This appointment is subject to regulatory approval.