Aviva will save £50m a year from staff pension changes, says 2010 annual report
Aviva's new corporate risk unit pulled in £50m new gross written premium last year at an impressive combined operating ratio of 81%, according to the 2010 annual report.
The impressive COR will dampen talk that Aviva was winning new business by undercutting its rivals. The new unit started underwriting from its London base at the end of 2009.
The report says: "We have made good progress in building our corporate risks and specialty lines business through the controlled expansion of our risk appetite and the recruitment of specialist expertise. We are attracting high-quality risks with £50 million of new gross premiums and a COR of 81%."
Aviva also it expects to save £50m a year from the closure of its final salary pension scheme in April 2011.
The report says: "Following consultation with our staff, we are closing our UK final salary pension schemes to future accrual from 1 April 2011.
"This will reduce the pension fund deficit benefiting Aviva’s net asset value by £286 million and reducing future funding costs by approximately £50 million per year."
Directors received a remuneration package of £7.75m last year. Moss received £2.49m, up from the £2.47m received in 2009.
