Aviva continues to cut costs; seeks funds
Aviva will continue to cut costs and entice funds in a bid to boost earnings, according to the insurer’s latest investor relations presentation.
The company’s CEO, Mark Wilson has plans to cut Aviva’s operating expense ratio to less than 50 percent from 54 percent in 2013 and double annual excess cash flow to 800 million pounds ($1.4 billion) by the end of 2016.
However, the company stated that the cost cutting measures will not include the loss of jobs at its Irish operations.
Wilson, who has replaced half of the senior level staff at the company recently, also aims to report positive fund flows from external clients at its Aviva Investors unit by next year, saying that it is time for the “next phase” of the company’s turnout.
Newly appointed chief financial officer Tom Stoddard said that Aviva had met its £400 million cost-cut target that it sought to achieve by 2014.
Aviva, which recently announced a new multi-asset strategy to increase profitability at the unit and attract new investors, reduced the markets that it operates in to 17 from 28 in 2011.
