Aviva reveals job cuts plan after agreeing to buy DLG for £3.7bn

Aviva has revealed that it is planning job cuts after agreeing to acquire Direct Line Group (DLG) for £3.7bn.

In a joint statement released on 23 December 2024, the two firms announced that they had agreed on the terms of a cash and share offer.

Aviva aims to save £125m annually in pre-tax costs within three years of the deal being completed.

The insurer said that it expected this to be achieved through a reduction in overlapping roles across the combined group.

Head office, senior management and insurance operations jobs are among those at risk. According to Reuters, Aviva could cut up to 2,300 roles.

DLG plan

The deal between the two insurers came amid DLG executing its own strategy after it suffered an operating loss from its ongoing operations of £189.5m in the 12 months to 31 December 2023.

Put in place by DLG chief executive Adam Winslow, the strategy aims to remove at least £100m of costs by the end of 2025 on a run-rate annualised basis.

In a trading update today on 11 November 2024, DLG also revealed that it was looking at cutting around 550 roles to help make its operating model more efficient.

Winslow said that while DLG “made fast progress on its turnaround strategy”, bringing the insurer and Aviva together “offers the opportunity to create a strengthened and enlarged business”.

“Both organisations share a deep passion for serving customers and for supporting their people,” he added.

“In a highly competitive UK general insurance marketplace, the combined entity will be very well placed to deliver for its customers.

“I am proud of what DLG has achieved to date and this offer will enable the business to continue to succeed as part of a combined group with Aviva.”