Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 17°C

ESTD 1874 Search

East Anglia: Aviva to exit US life and pensions market

11:54 21 December 2012

The Aviva building in Norwich

The Aviva building in Norwich

INSURANCE giant Aviva is to quit the US life and pensions market after announcing a £1.1billion deal to offload its American arm.

shares

The Norwich-based group is selling Aviva USA to Athene Holding, a major player in America’s pension annuity sector.

The move comes six years after Aviva entered the US with the acquisition of AmerUs for £1.6bn, although the group stressed it will retain its asset management presence in America.

Today’s sale comes as part of a restructuring being led by chairman John McFarlane following the departure of chief executive Andrew Moss in May amid discontent over a poor share price performance.

New chief executive Mark Wilson, the former boss of Asian insurer AIA, is due to take on the reins on January 1.

As part of the plans announced in July, Mr McFarlane is working towards the sale or scaling back of 16 underperforming businesses.

It is also cutting up to 800 jobs across the business under plans to slash costs by £400million.

Aviva has already offloaded its Sri Lankan business, sold down its stake in Dutch insurer Delta Lloyd and earlier this week announced it was netting almost £500million after agreeing a settlement to walk away from its Spanish joint venture with Bankia.

It said today that the sale of its US business will “considerably” boost its balance sheet strength.

Mr McFarlane added: “The disposal of the US business, combined with the recent settlement with Bankia, represents a successful end to the year and sets us up well for 2013.”

Aviva USA is a provider of indexed life insurance and indexed annuities with more than 930,000 customers.

Headquartered in Iowa, the business employs 1,800 people and has offices in Topeka, Kansas and Melville, New York.

Athene will become America’s second largest fixed and equity indexed annuities player following the deal.

shares

0 comments

Stephen Rose, SSE head of offshore wind generation

The man tasked with ensuring the smooth operation of a £1.6bn windfarm off the Suffolk coast has explained the challenges of overseeing 140 turbines capable of powering half-a-million homes and the contractual “crossroads” his firm faces next year.

Students at UCS in Interior Architecture and Design, have been taking part in a design competition to design an entrance canopy for the St Edmunds House apartments in Rope Walk.
Ross Carroll, director of Crown House Homes, left, with course tutor Dr Liana Psarologaki, and Annali Hubbard of Palmer & Partners estate agents, and some of the course students, Elliott Jones, Bryony Briggs, Dan Hutton, Amy Schuller and Michelle Villar

Apartment developers hold a design competition with university students

A member of staff at N2S bagging up scrap computer components ready for further destruction and recycling.

A Suffolk-based computer equipment lifecycle management company is celebrating after achieving accreditation allowing it to work at the highest level of Government.

Culture Secretary John Whittingdale, left, visiting Ipswich company IJYI.

Culture Secretary John Whittingdale has urged more small and medium-sized businesses in and around Ipswich to sign up to a scheme which provides the funding for the infrastructure they need to get fast broadband connections.

Post Office

The Post Office in a Suffolk town is moving to new premises, and will offer longer opening hours.

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Most read

Most commented

Topic pages