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Aviva to quit US pensions market
11:45am Monday 24th December 2012 in Hampshire Business
INSURANCE giant Aviva, which has offices in Hampshire, is to quit the US life and pensions market after announcing a £1.1bn deal to offload its American arm.
The group, which employs hundreds at its Chandler’s Ford base, 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.
It 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 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 £400m.
Aviva has already offloaded its Sri Lankan business, sold down its stake in Dutch insurer Delta Lloyd and announced it was netting almost £500m after agreeing a settlement to walk away from its Spanish joint venture with Bankia.
The Norwich headquartered insurer said the sale of its US business will “considerably” boost its balance sheet strength.