View more on these topics

Aviva UK to exit large-scale bulk annuity market in £400m cost-cutting drive

David Barral 480

Aviva will pull out of the large-scale bulk annuity market in the UK as part of a group-wide cost-cutting drive spearheaded by chairman John McFarlane.

In a statement issued this morning, McFarlane outlined plans to slash expenses by £400m in an effort to appease shareholders disappointed by the insurers performance.

As part of this, the provider has identified 16 ‘non-core’ businesses which it intends to exit. These include South Korea, UK large-scale bulk annuities and small Italian partnerships.

It remains unclear how many jobs are at risk as a result of the review.

Speaking to Money Marketing, Aviva UK Life chief executive David Barral (pictured) says: “The returns on large-scale bulk annuity business simply didn’t justify the amount of capital we had to deploy.

“We are definitely not going to play in this market, but we will continue to focus on the sub-£50m bulk annuity market because that can still be profitable.

“The UK life business is the bedrock of the high performing businesses in the group and we remain absolutely committed to the UK market.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com