Aviva's new CEO to split company and cut 1800 jobs

UK insurer Aviva to slash 1,800 jobs

UK insurer Aviva to slash 1,800 jobs

Aviva said in a statement that it planned "approximately 1,800 role reductions across the group over the next three years, out of a total workforce of around 30,000".

Aviva insider Maurice Tulloch took over as CEO in March, amid investor concern that the insurer, which provides pensions as well as auto and home insurance, was failing to cross-sell its products successfully.

The provider said in a statement that it will "look to ensure that redundancies are kept to a minimum wherever possible, for example through natural turnover". "The scale of this role reduction will be met with disbelief across the company", he said.

"Therefore it is too early to comment on the impact on Aviva Ireland", the company added.

Aviva Plc chief executive officer Maurice Tulloch kicked off his overhaul of the company by splitting management of its United Kingdom businesses and targeting cost cuts of £300 million (S$519.3 million) per year by 2022.

Aviva's domestic rivals - Prudential and Legal & General - have fared better in recent years by focusing on life cover and pensions rather than general insurance.

He also said that the firm's existing management structure "has not allowed leaders to be held accountable".

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It is the only listed United Kingdom insurer with large life and general insurance arms, and some analysts have backed a sell-off of its general insurance business. Angela Darlington takes over as interim CEO of the life insurance division.

Mr Tulloch - who took over from former boss Mark Wilson - said in April he was leading a review of the United Kingdom businesses "to ensure the appropriate management structure".

The UK digital business, housed in a former garage in the City of London's tech district, will be incorporated into the UK general insurance business, it said. Its global operations, which Tulloch ran before being promoted to the top job, include France, Italy, Ireland, Poland, Turkey, Canada, India and China.

Around 1,800 jobs are being axed at insurance giant Aviva over the next three years as part of an overhaul to save £300 million a year.

Andy Case at Unite said Aviva staff in the United Kingdom would be shocked and that the union would fight compulsory redundancies. "Reducing Aviva's costs is essential".

Aviva said today that its trading to date had been in line with 2018, with a stronger performance in Canada, and reiterated its commitment to a progressive dividend policy.

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