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.”