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Aviva restructure could see 15 divisions axed
by Dylan Lobo on Jul 02, 2012 at 08:13
According to reports Aviva could close or sell up to 15 divisions as part of its turnaround strategy.
Chairman John McFarlane (pictured) is expected to reveal that between 10 to 15 businesses will be shut or sold when he unveils the results of the firm’s strategic review on Thursday. Reports suggest the firm’s US business, which is said to be worth £1 billion, will be among those culled.
McFarlane became executive chairman at Aviva following the departure of chief executive Andrew Moss, who was forced out during the ‘shareholder spring’ as investors rebelled over pay and performance at the firm. A total of 59% shareholders refused to back Aviva’s remuneration package.
According to the Sunday Times, McFarlane has stripped out four layers of management at the firm's London headquarters and has split Aviva's operations into more than 50 units, which he has classified as either core, in need of improvement, or for sale.
The restructure at Aviva has already seen it close a number of units at its asset management subsidiary, Aviva Investors, resulting in a number of redundancies.
Aviva chairman Colin Sharman has also officially retired from the life company in line with plans announced last year.
Sharman stepped down from his position as chairman, as well as chairman of Aviva’s nomination committee and corporate responsibility committee on 30 June.
Sharman was appointed the Aviva board in 2005, becoming chairman in 2006.
McFarlane said: ‘Colin chaired the board of Aviva successfully, mainly during a period of economic uncertainty ….Under his leadership of the board, the company also developed into a single strong brand, easily recognisable in the markets where it operates. On behalf of the board, I would like to thank Colin for his service to the company and we all wish him well for the future.’
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