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Aviva sell-off set to continue; unveils nine point turnaround plan

by Alex Steger on Nov 08, 2012 at 07:51

Aviva sell-off set to continue; unveils nine point turnaround plan

Aviva has confirmed it is in talks to sell off its US life and pension business and is looking to dispose of eight further business divisions, as it continues in its global restructure.

The provider also unveiled a nine point transformation plan which includes eliminating unsuccessful products, launching existing life and pensions products into new markets, and re-pricing products.

It said its review of its head office, support activities and non-staff costs was well advanced.

UK life sales were flat, in the third of quarter of 2012, due to the provider’s decision to dispose of its bulk annuity business.

Excluding bulk purchase annuities, UK life and pensions sales were up 3%. Individual annuities were up by 11% and group personal pension sales were up by 15%.

The company also said it was looking to refocus its life insurance distribution away from less-profitable building society partnerships.

4 comments so far. Why not have your say?

Philip Dodd

Nov 08, 2012 at 08:52

Well, at least it didn`t attribute its flat sales to RDR and adverse persistency.

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Martin Wight

Nov 08, 2012 at 09:15

@Philip

Spot on - Aegon,AVIVA etc. paid circa 6% initial commission in the past on transfers to stakeholder on 1% amc with many year to recoup this.(assuming persistency!)

Unprofitable business and short term incentives as always.

Non legacy providers will thrive.

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Julian Stevens

Nov 09, 2012 at 08:08

I said more than ten years ago that stakeholder pensions would be commercial suicide for any provider crazy enough to believe such products would do anything other than lose them money hand over fist and so it's turned out. Aviva and others compounded the folly by unilaterally stakeholdering all existing PP's without prior notice, let alone asking permission from all the IFA's who'd placed that business with them in the first place. In response, many intermediaries simply stopped using them for anything at all other than purely cost-driven products and we've not looked back since. I have no sympathy at all for companies such as Aviva, Friends Provident, Clerical Medical, Standard Life and all the others that perpetrated such treachery. By having shafted us, they shafted themselves and it serves them jolly well right.

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Duncan via mobile

Nov 12, 2012 at 07:58

What a sage you are Julian! Given that RU64 also came along with Stakeholder, I am struggling to see exactly what treachery you are referring to? It's very clear to me who got shafted here and it wasn't you!

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