Aviva restructures, plans new retirement focus

Aviva has announced a global restructure that will see the group split into five separate divisions, including the creation of a new retirement business.

Announced yesterday, Aviva has reviewed its operations and is now simplifying its structure with plans to separate the group into five businesses, including UK Life, general insurance, Europe Life and Asia Life.

The fifth business will be a dedicated investment, savings and retirement division to tackle issues associated with retirement; the result of merging Aviva Investors with the UK Savings business.

Aviva will build the first holistic savings and retirement solutions business in the UK, it said.

Aviva described the new business as "a significant global outcomes oriented asset manager and the UK's leading savings and retirement solutions provider".

The group also confirmed it is exploring strategic options for its operations in Vietnam and Indonesia. It has reportedly offloaded its Hong Kong business to its partner, Hillhouse Capital.

Aviva recently completed a review of its Singapore business which it has opted to retain, along with its Chinese operations.

According to reports, the restructure will see the removal of about 2000 jobs over the next three years.

Aviva is aiming for cost reductions of £300 million in net savings by 2022.

Aviva chief executive Michael Tulloch said: "Our strategic review has been rigorous and thorough. I am committed to running Aviva better. We will be more commercially focused, manage costs rigorously, and be more disciplined in how we invest."

"We will excel at the basics, giving customers a simpler, faster and more convenient service. Getting these fundamentals right will result in a simpler, stronger, better Aviva, while also improving returns for shareholders."

Read more: Aviva InvestorsAsia LifeEurope LifeHillhouse CapitalMichael TullochUK LifeUK Savings
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