All change at Aviva

Aviva has not wasted time in getting its strategic overhaul underway. Following a shareholder rebellion around directors’ pay, last month the insurer announced changes including a focus on fewer, more profitable areas of the business and the sale or exit of 16 underperforming businesses.

At the time, the insurer said most of the changes would happen in the next 12 months, with some coming in 2013.

However, a lot has already happened. This morning the news broke that Aviva has sold its eastern European businesses, and last week Aviva announced it was pulling out of Taiwan.

Meanwhile, rumours suggest that the insurer has had several approaches for its US life business and that it would be prepared to take an £800m writedown on the sale of that unit.

Aviva has also parted with products and governance director Mark Hynes as part of its plans to strip out layers of management.

The company seems to be carrying out the changes at top speed, perhaps prompted by chairman John McFarlane’s previously-stated aim to “regain the respect” of the shareholders.

So what will the insurer offload next? Analysts believe that it will be easier for Aviva to find buyers for its Asian businesses rather than its US and European arms.  

This means that the insurer’s businesses in Taiwan and South Korea could be next to go, but equally those rumours about the US life sale won’t go away.

Another big issue for the Aviva top brass is the appointment of a new group chief executive. A lot of people believe that current group transformation director David McMillan might be the frontrunner for this role.