Separation of life and general insurance business in UK
Last month we reported that Aviva CEO Maurice Tulloch was plotting a shake-up of its UK business.
On Thursday, the insurer confirmed that its life and general insurance business in the UK will be managed separately, which will involve around 1,800 role reductions.
Aviva currently employs around 30,000 people and said it will look to keep redundancies to a ‘minimum wherever possible'.
The job cuts are intended to reduce expenses by £300m per annum by 2022.
As part of the reshape, the insurer has reiterated its commitment to a progressive divided policy and debt reduction of at least £1.5bn.
Aviva also integrated its digital direct business into its UK general insurance division.
Maurice Tulloch, who was named CEO on 4 March, 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."
According to Tulloch, he plans to "crack" Aviva's complexity issue while reducing cost and duplication. "The sustainability and security of our dividend is paramount," he said. "We are focused on improving our performance to grow capital generation and cash-flow."
Meanwhile, Angela Darlington has been appointed interim chief executive officer of UK Life and Colm Holmes has been appointed chief executive officer of General Insurance.
On 20 November, Aviva will host a capital markets day that will update on our future strategy and targets.
For directly authorised member firms
Completes first part of integration
Leading the charge