Executive Summary
Aviva (LON:AV) is a large insurance company that is headquartered in the UK. The company is a global operator, with interests in Europe and beyond, where it provides life and pensions products to customers. In 2009, the company rebranded its UK business from Norwich Union to Aviva, and in the same period, it integrated 12 of its European businesses to create a globally consistent brand. The company's main products and services include general insurance products, long-term savings and investments, and fund management. In 2008, Aviva achieved total sales of £51,415m and earned a profit of £3,358m.
Company History
Although Aviva's heritage can be traced back over 300 years, it has only been trading as Aviva since 2002. Some of key milestones in the company's history are provided below.
- 2000: CGU and Norwich Union merged to create CGNU.
- 2001: CGNU completed the sale of its US general insurance business.
- 2002: CGNU renamed as Aviva and sells general insurance businesses in Portugal, Spain, Pakistan, Australia and New Zealand and CGU Courtage in France.
- 2004: Aviva sells its general insurance businesses in Asia, its Your Move estate agency and e.surv surveying businesses in the UK. It also acquires HPI Group Holdings Ltd, the UK’s leading provider of vehicle status checks for used-car purchasers, and closes UK broker subsidiary Hill House Hammond.
- 2005: Aviva brings together Norwich Union Insurance and RAC in the UK for about £1.1 billion. Aviva appoints new chairman. In Ireland, Hibernian enters a bancassurance joint venture with AIB.
- 2006: Aviva announces changes to group organisation to create Aviva UK and Aviva International. Aviva partners with Centurion Bank of Punjab in India and announces an acquistion and bancassurance deal in Sri Lanka. Aviva receives a licence in Russia and acquires AmerUs in the US.
Current Events
In May 2009, Norwich Union was rebranded Aviva as part of the company's strategy to transform the business and compete globally. The change reflects the vision set out by Andrew Moss, chief executive, in October 2007, "One Aviva, twice the value",
The company has recently announced a H109 profit of £1,049m, down from £1,223m for the same period in 2008, although margins have increased by 4%, and the group has achieved an operating cost reduction of 9% (£0.5bn annualised). [1]
Business Model
Aviva is structured into the geographic regions, UK, Europe, North America and Asia Pacific. In addition, the investment…
