12:20pm Friday 8th March 2013
AVIVA’S Life and pensions business, which employs about 2,500 people in York, has proved to be a cornerstone of the business, its chief executive said.
As the global brand announced losses of £3.3 billion mainly connected to the sale of its US business, David Barral, chief executive of Aviva’s UK Life business, said underlying performance in the UK had grown.
While profits dipped in its preliminary results for 2012 to £887 million, down from £917 million in 2011.
Mr Barral described the change as “not a lot of difference”.
Revenues from continuing product lines increased, but overall revenues were down because of the company’s decision to withdraw from bulk purchase annuities, a less profitable product.
The company cut 2,500 jobs across the whole business last year, including 800 in the UK Life business, although it refused to detail how many in York.
Mr Barral said there would be further cuts this year too, although they could not yet say where, and he said jobs would not be the main focus of the cost-cutting programme, which will target consultants, IT costs and real estate.
He thanked the staff in the York office, which contributed to improved customer service ratings.
He said: “What was reinforced is that the UK business is a cornerstone of the group and on the positive side of it’s operating performance.”
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