Partly Cloudy

Partly Cloudy

max temp: 18°C

min temp: 11°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

The first departure of the Port of Felixstowe's 31st daily rail freight service, to Birch Coppice.

The Port of Felixstowe today saw the launch of its 31st daily rail freight service.

Holiday parks group Park Resorts is to merge with rival operator Parkdean.

The UK’s biggest holiday park operator is to be created through a £960million merger deal involving Parkdean and Park Resorts.

EADT BUSINESS

Chris and Hayley Lee, pictured outside The Bildeston Crown

PICTURE CONTRIBUTED 

EADT 20/9/07
EADT 22/12/07
EADT 25.4.09

A couple who held senior posts at a country hotel-restaurant when it won a clutch of awards has returned.

Matt Howard and Stuart Morton of chartered accountants and business advisers Price Bailey.

Twenty-four staff have lost their jobs at a Lowestoft department store which went into administration last month as urgent efforts continue to find a buyer for the business.

Halfords has reported a fall in bike sales over the past two months.
Photo: Newscast/Mathew Growcoot

Halfords today reported a slump in bike sales over the last two months amid rainy weather and heavy discounting.

ASOS chief executive Nick Robertson, who is stepping down with immediate effect.

Online fashion retailer ASOS said today that its chief executive Nick Robertson is to step down with immediate effect from the helm of the company he founded 15 years ago.

BSP International Foundations, part of Tex Holdings plc of Great Blakenham, which has bought the assets and business of G & M Power Plant.

Nineteen out of 35 jobs at an electric generator manufacturer have been saved after its business and assets were bought out of administration on Wednesday.

Maria Peyman of Birketts with colleagues Katherine Shadbolt and Kitty Rosser.

Maria Peyman has joined the commercial litigation team at law firm Birketts as a senior associate.

Aga is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby's £129 million offer.

Upmarket cooker firm Aga Rangemaster is at the centre of a takeover tussle after revealing US electronic appliances giant Whirlpool was considering a bid to rival Middleby’s £129 million offer.

A Punch Tavern pub

Pub group Punch Taverns is set to post a slight fall in annual earnings as it continues to offload pubs to cut its debt pile.

Most read

Most commented

Topic pages