Aviva to split UK business, cut 1,800 roles in cost saving
This will enable stronger accountability and greater management focus on the UK’s leading life and general insurance businesses.
Aviva intends to reduce expenses by £300 million per annum by 2022, net of inflation, at constant currency.
Cost savings will be achieved through lower central costs, savings in contractor and consultant spend, reduction in project expenditure and other efficiencies.
This will involve approximately 1,800 role reductions across the group over the next three years, out of a total workforce of around 30,000.
Aviva will look to ensure that redundancies are kept to a minimum wherever possible, for example through natural turnover.
Aviva has engaged with Unite and our employee representative bodies and will continue to consult on specific proposals.
Aviva reiterates its commitment to a progressive dividend policy and debt reduction of at least £1.5 billion.
Year-to-date trading is broadly consistent with 2018: weaker performance in savings and asset management arising from lower investment markets have been partly offset by growth in Europe and Asia together with progress on our turnaround in Canada.
UK longevity assumptions will be assessed in the second half of 2019. ■