Aviva confirms possible strategic exits in June
Aviva is gearing up to leaving some markets in June as it undertakes a strategic review - without a chief executive in place.
John McFarlane, executive deputy chairman, told the market this morning: “We have about 45 profit centres in the group and we are looking at various factors that will help us decide what to invest in and what to leave.
Mr McFarlane said: “There are some fantastic businesses that we have in good markets that can grow further if we invest in them. Other businesses just can’t grow much in their markets.
“I am not prepared to go into any detail yet but we will be making announcements in June.”
Responding to a question about whether it was justifiable to press ahead with changes without a CEO in place after Andrew Moss stepped down earlier this month, Mr McFarlane said: “If you think we should not do anything until we get a CEO in place down the road, you would be foolish. We have to generate shareholder value.
“And, as far as you are concerned, I am the acting CEO. And we have already seen some fantastic people, so we are confident this is the right direction.”
He was speaking as the company unveiled its first-quarter results. He pointed out to some strong areas of the business, such as asset management, which has seen £1bn of inflows in just the first quarter.
The company vowed to continue to increase its level of capital surplus and to decrease its level of volatility.
Mr McFarlane added: “We are allocating our capital and managing our capital to give us a foundation for our future.”
Aviva’s estimated IGD solvency surplus - capital employed less regulatory capital requirement - at 31 March was £3.2bn, ahead of the full year 2011 position of £2.2bn and in line with the position at 29 February 2012 of £3.3bn.
However, long-term savings sales were down 5 per cent at £7.5bn, compared with £7.8bn over the same quarter 2011.
General insurance and health net written premiums were level with last year at £2.2bn.