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Daily Insurance Industry News
Monday 20th of May 2019
April 2, 2009

Aviva to cut 1,100 staff and 590 contract jobs

by Gill Montia

Story link: Aviva to cut 1,100 staff and 590 contract jobs

Aviva to cut 1,100 staff and 590 contract jobs

The BBC has reported that Aviva is proposing to cut 1,100 UK jobs this year and at the same time “close” 590 contract positions, which will go over the next few months.

Trade union, Unite, expects staff at the group’s York and Norwich offices to be in the front line, although job losses at other UK sites are expected.

The union has also revealed that Aviva is presenting the cull as unconnected to the economic downturn.

However, earlier this week Standards & Poor’s (S&P’s) announced that it was cutting Aviva Plc’s credit rating because of concerns about the group’s exposure in the financial markets.

The company’s long-term counterparty credit rating has therefore been downgraded from “A+” to “A”.

S&P’s also reported that it expects difficult investment market conditions to impact adversely on cash flows at Aviva’s subsidiaries during 2009 and 2010.

The rating agency specifically referred to the group’s businesses in the Netherlands, France, Ireland, and the UK in this connection.

The group, which owns the soon-to-be-renamed Norwich Union, posted a net loss of £885 million for 2008, compared to a profit of £1.5 billion in 2007.

 

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