Insurance giant Aviva have announced a major strategic overhaul of their business, at the same time as strong sales have been reported in the third quarter. However, the overhaul will not affect the company’s range of life insurance and savings -related products, or its non-life insurance business.
Aviva are looking to make cost savings of around GBP400 million, and are focusing on continuing to do business in 12 out of the 30 regions in which it currently operates. The plans will means the sale of overseas assets, which it hopes will ensure the cost savings, and also generate cash of GBP1.5 billion.
Business sales now stand at GBP35.9 billion for the first nine months of this year, and there has been an increase in long-term savings sales of 6 per cent to GBP28.6 billion. In addition, the net written premium income on general insurance and health policies went up by 4 per cent to GBP7.3 billion.
Although it rejected a GBP5 billion bid from RSA for its general insurance business earlier in the year, Aviva's plans for improving profitability and pushing up earnings and capital returns are in line with market expectations, although their expansion in life insurance is now being restrained. It is expected that selling off parts of the business around the world will help it to reduce its debt and bring more confidence regarding the payment of cash dividends.
----------------------------------------------------------------------------------------------------------------------------------------------
What can only be described as the Aviva saga is Britain’s very own AIG-lite drama. Sit back and watch it all unfold.
No comments:
Post a Comment