Aviva says it is looking to make £200m of cost savings and £200m of efficiency savings as it announced an increase in UK sales.
In its results for the first nine months of 2010, Aviva revealed it was looking to make the cost savings and efficiencies across the group with £100m of cost savings coming from the UK.
Half of the UK cost savings will come from the closure of the firm’s final salary scheme. The insurer says much of the rest of the cuts will come from economies of scale due to its enhanced e-commerce capabilities.
In a conference call this morning, Aviva UK chief executive Mark Hodges (pictured) said there would be no job cuts in the UK, although there would be job losses in the US and Canada where £50m of costs will be cut.
In the UK, total sales increased 16 per cent, from £10.61bn to 12.28bn. Long-term saving sales increased 22 per cent, from £7.3bn to £8.9bn while life and pension sales increased 15 per cent, from £6.7bn to £7.6bn. Worldwide, sales were £35.9bn, a 5 per cent increase on 2009 figures.
Hodges said the outlook in the UK is positive as the firm looks to take advantage of the current raft of pension reforms.
Aviva group chief executive Andrew Moss says: “As we look to the next phase of our growth, Aviva will sharpen its geographic focus and deepen its position in its key markets through its strengths in both life and general insurance. Our UK business is an excellent example of how this strategy is delivering value for our shareholders and customers.”