Aviva plans potential split of UK business
New Aviva chief executive Maurice Tulloch is reportedly planning to split the company’s UK business in two parts.
According to The Financial Times, the insurance company could be divided into tow units, one for its life insurance operations and the other for its activities in the non-life insurance space, less than two years after they were merged under former chief executive Mark Wilson.
The official announcement is expected next week as part of Tulloch’s move to “re-energise” the 323-year old British company. Aviva was scheduled to update investors on its chief executive’s plans on 6 June.
Tulloch is also likely to announce a push to make Aviva more efficient as the company’s costs have been rising in recent years and he believes “our cost to income ratio is higher than it ought to be.”
Towards the end of last month, Aviva announced a shake-up of the UK unit's senior management team, including the replacement of its UK Insurance chief executive officer.
Andy Briggs stood down from his role as Aviva's UK Insurance CEO, and from the company's board, with Chief Risk Officer Angela Darlington taking up on the role on an interim basis.