FTSE falls as investors fearful of insurance companies
by Kay Murchie
Story link: FTSE falls as investors fearful of insurance companies
The stock market has been volatile of late due to fears of a global recession, however, today, the FTSE 100 has fallen today with well-known insurers suffering heavy falls.
The latest stock market fall slump has renewed fears about the solvency ratios of the big insurance companies, as they may be forced to sell stock into […]
Aviva seeks to reassure investors
by David Masters
Story link: Aviva seeks to reassure investors
London-based Aviva Plc, the biggest insurer in the UK by assets, sought to reassure investors today as it posted sales results for the third quarter.
The insurer told shareholders that its capital reserves are ‘very strong’ and reported a 12% rise in life and pension sales during the first nine months of 2008.
New business for the […]
NU withdraws Paymentshield unemployment insurance
by Gill Montia
Story link: NU withdraws Paymentshield unemployment insurance
Norwich Union (NU) has withdrawn its unemployment-only cover, provided through its partnership with Paymentshield, which claims to be the UK’s largest independent supplier of mortgage related insurance products to the intermediary sector.
The withdrawal has been made with immediate effect and analysts expect other insurers to follow suit, given that both the Prime Minister and the […]
NU with-profits reattribution on shaky ground
by Gill Montia
Story link: NU with-profits reattribution on shaky ground
The recent turmoil in the financial markets has led to speculation that Norwich Union’s (NU) long-awaited reattribution of its with-profits surplus could be shelved.
In July, NU’s parent company, Aviva, announced that it would be prepared to pay a windfall that would average £1,000 per policyholder, to customers who had invested in GCNU Life or CULAC […]
Pru and Aviva shares slide on capitalisation fears
by Gill Montia
Story link: Pru and Aviva shares slide on capitalisation fears
Indications that the Financial Services Authority (FSA) will ease the capital requirement of UK insurers, to prevent some of the problems seen in the UK banking sector, have been followed by sharp falls in the share prices of Prudential and Aviva.
Both companies may have to take significant writedowns as a result of market turbulence.
In addition […]
Aviva reassures investors: capital is safe
by David Masters
Story link: Aviva reassures investors: capital is safe
Aviva has confirmed that its capital position remains strong despite tumultuous financial markets.
The company has increased its hedging against future falls in global stock markets.
In addition, it announced that in the third quarter its surplus regulatory capital increased despite falls in its share price.
Andrew Moss, Aviva CEO, said the company has taken action to ensure […]
Insurers calculate exposure to Lehman Brothers and AIG
by Gill Montia
Story link: Insurers calculate exposure to Lehman Brothers and AIG
As insurance companies take stock after the collapse of Lehman Brothers and the last minute rescue of AIG, estimates of exposures are emerging.
Friends Provident calculates that its exposure to Lehman Brothers is around £18 million but the life and pensions provider expects any loss to fall well short of this amount when taxes and recoveries […]
Pru and Avivia tipped to benefit from AIG sale
by Gill Montia
Story link: Pru and Avivia tipped to benefit from AIG sale
As American International Group (AIG) begins to sell its assets, Prudential and Aviva have both been mentioned as companies likely to be showing a strong interest in the auction.
The US Federal Reserve rescued AIG on Tuesday night, lending the group up to $85 billion to prevent a collapse that would have impacted on markets […]
NU withdraws from price comparison websites
by Gill Montia
Story link: NU withdraws from price comparison websites
Norwich Union (NU) has withdrawn its direct motor products from all insurance price comparison websites.
The company, which forms part of the Aviva group, has announced the launch of Price Check Norwich Union, an Internet and telephone service that promises to show customers the prices and details of competitors’ products, even when they outshine its own.
According […]
NU cuts final bonuses for with-profits policyholders
by Gill Montia
Story link: NU cuts final bonuses for with-profits policyholders
Norwich Union (NU) has announced that it is cutting final bonuses for with-profits policyholders whose policies are maturing this year.
The insurer, which is part of the Aviva group, says it is taking the action to protect the strength of its four with-profits funds amid falling equity markets, commercial property values and corporate bond yields.
The company’s […]
NU with-profits reattribution offers £1,000 per policyholder
by Gill Montia
Story link: NU with-profits reattribution offers £1,000 per policyholder
The lengthy matter of the reattribution of Norwich Union’s with-profits surplus looks close to a resolution, as the insurer’s parent company, Aviva, announces that it is prepared to pay a windfall that would average £1,000 per policyholder.
The customers eligible for the payout are those who invested in GCNU Life or CULAC with-profits funds before November […]
Norwich Union to cut up to 1,800 jobs
by Richard Kilner
Story link: Norwich Union to cut up to 1,800 jobs
Norwich Union, which is owned by Aviva, could shed as many as 1,800 jobs within the next two years.
By 2010 Aviva is expected to have reduced Norwich Union insurance operations across the UK to focus on seven main centres: Norwich, Perth, Bishop Briggs, Stretford, Manchester, Leicester and Southend.
The move comes as part of a restructuring […]
Aviva call centres closures cost 1,800 jobs
by Gill Montia
Story link: Aviva call centres closures cost 1,800 jobs
Aviva, the parent company of Norwich Union, has announced that it will close 15 of its 22 UK call centres by 2010.
The move forms part of a rationalisation of the group’s general insurance business and will result in around 1,800 job losses.
It is understood that Aviva will also be dramatically reducing the number of general […]
Aviva awards £300m contract to Cable&Wireless
by Gill Montia
Story link: Aviva awards £300m contract to Cable&Wireless
Aviva has awarded a £300 million six-year contract for a communications package to Cable&Wireless Europe, Asia & US.
Under the terms of the agreement, Cable&Wireless will provide the insurer with a full communications suite for its 35,000 staff based in the UK and India.
The suite comprises 72 separate services, including voice telephony, data, local and wide […]
Aviva drops Norwich Union brand
by Gill Montia
Story link: Aviva drops Norwich Union brand
Aviva has shocked the UK insurance world with the news that it will be dropping its Norwich Union brand.
Norwich Union was formed in 1797 and has been a household name in general insurance for decades.
However, Aviva’s chief executive, Andrew Moss, is keen to have all the group’s products under one brand that can be recognised […]
Aviva profits see heavy fall
by David Masters
Story link: Aviva profits see heavy fall
Aviva, the parent company of Norwich Union, has reported its results for 2007, with general insurance profits falling 39% to £1.033 billion. This was compounded by a 6% rise in its combined operating ratio (COR), which reached 100%.
The company’s net premiums also fell to £5.4 billion, a decrease of 3%.
Norwich Union’s contribution to the […]
Aviva posts 1% profit rise and rebrands invesmtent business
by Gill Montia
Story link: Aviva posts 1% profit rise and rebrands invesmtent business
Aviva, the UK’s largest insurer, posted a 1% increase in operating profits, to £3.29 billion, for 2007.
The group recorded strong growth in its life business, with operating profit rising 35%, to £2.75 billion. Sales in both long-term savings and life assurance products rose sharply.
However, operating profit from its general insurance and health division fell by […]
MPs investigate reattribution of “orphan” funds
by Gill Montia
Story link: MPs investigate reattribution of “orphan” funds
A committee of MPs has today begun a major inquiry into the way in which insurance companies are reattributing their surplus with-profits funds.
The money, which is sometimes referred to as an “orphan” fund, or inherited estate, is defined by the Financial Services Authority (FSA) “as the excess of assets maintained within the long-term fund over […]
Sales up 60% for Norwich Union International
by David Masters
Story link: Sales up 60% for Norwich Union International
Norwich Union International, which is Aviva’s Dublin-based offshore business, has reported sturdy growth figures for 2007.
The company’s offshore sales in 2007 totaled £521 million, a 60% increase on the £325 million sales for 2006. These figures were reported on a PVNBP basis, and include with-profits and unit-linked offshore bonds.
Unit-linked offshore bond sales for 2007 […]
Aviva returns £2.1bn to policyholders
by Gill Montia
Story link: Aviva returns £2.1bn to policyholders
After threatening to withdraw plans to reattribute Norwich Union “orphan” funds, Aviva is proposing to pay out half of the inherited estate (£2.1 billion) to 1.1 million with-profits policyholders.
Aviva’s CGNU Life (which includes General Accident) and CULAC (which includes Commercial Union) with-profits funds have exceed what is required to cover the payouts promised to policyholders […]
