ProtectionMay 22 2013

Wilson: ‘Challenging’ cuts costs Aviva £54m

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ByIona Bain

Aviva’s group chief executive officer said that while the restructure had been tough, it would be beneficial for shareholders and customers.

According to Aviva UK’s life results, the company’s restructuring programme cost £54m in the first quarter, with the figure predicted to rise throughout the year. Mr Wilson pledged that restructuring costs will be “modest” in future years.

Operating expenses were down 10 per cent to £769m while internal debt dropped by £300m.

Mr Wilson said: “Today’s results demonstrate the first steps towards delivery. I am conscious of the challenges and do not want to set expectations at an unrealistic level. Progress so far has been satisfactory and there is a great deal more we need to do for our shareholders.”

Meanwhile, new business at Aviva’s UK life arm grew by a third year on year in the first quarter of 2013, the company’s interim statement has shown, reaching £108m.

Adviser View

Neil Davies, financial adviser at Yorkshire-based JM Glendinning, said: “I like Aviva because it doesn’t bombard you with marketing calls: it lets you get on with business. We placed a protection case with Aviva recently, and within 24 hours it called to ask about outstanding requirements and to assure me the case was being processed.”