While U.K. insurer Aviva mentioned plans to cut 1,800 jobs over the next three years, it is not likely to scale back in Asia where it is seeing growth.
Last week, Aviva announced it is splitting the life and general insurance businesses and managing them separately. With offices in 16 countries and a global workforce of 30,000 people, the group aims to cut costs by 300 million pounds a year by 2022, according to a «BBC report».
Chief executive Maurice Tulloch - who took the reins in March this year - said that the insurer's «complexity» had held back its performance «for too long». Despite the painful restructuring at the group level, the firm does not appear to be scaling back in Asia.
Asia Saw Growth
Aviva Asia saw a 24 percent increase in operating profit to 133 million pounds (S$236.8 million) last year, which positions the group to strengthen its distribution channels and continues its growth in Asian markets. Its value of new business (VNB) in Asia increased by 15 percent to £191 million (SG$340 million) last year, according to «Insurance Business Magazine».
According to Aviva, its financial advisory (FA) channel remains the largest contributor to its growth in Singapore. The insurer said that it will continue investing in this channel, led by the belief that the FA model provides enhanced flexibility and choice for both advisers and customers.
China Growth
In China, its joint venture Aviva-COFCO ranked fourth among all life insurers in the China Banking and Insurance Regulatory Commission’s Solvency Aligned Risk Management Requirements and Assessment.
In September last year, Aviva’s joint venture with Tencent and Hillhouse launched a new digital insurance brand in China - Blue. The first digital life insurer in Hong Kong offers term life, critical illness, and personal accident products.
