More to do in transforming performance but change underway says Aviva’s chief exec Amanda Blanc

Aviva has begun to make some progress with transforming its performance, however there is still more to do, said chief executive Amanda Blanc.

“What is abundantly clear to me is that Aviva needs to deliver meaningful change to truly transform our performance,” Blanc said on the day the company released its Q3 trading update.

“Despite some initial success, transforming the performance of Aviva will take time and there is a great deal to do – but we are focused on delivering.

“We need to continue identifying the changes that are necessary and we need to execute them efficiently and effectively. My colleagues will tell you that they are clear on what it requires, and that change is underway.”

It follows Aviva outlining three strategic priorities in August:

• Focus the portfolio on Aviva’s strongest and most strategically advantaged businesses in the UK, Ireland and Canada – its core markets;
• Transform performance;
• Financial strength – Aviva’s Q3 balance sheet demonstrates it is in “robust health”.

Taking action

“I am pleased to report that we are delivering robust growth in our core businesses – especially in the segments where we can deliver attractive margins and have long-term growth prospects,” she continued.

Aviva is on track for £150m in savings for the full year 2020, and it will deliver the £300m cost savings target by full year 2022 from its core markets.

But she said: “We will not rely on disposals to deliver any of these savings.”

Blanc explained that the firm has already begun transforming performance, this includes:

• Rationalising the number of products and legacy platforms
• Simplifying, automating, and digitalising more of its customer journeys
• Removing the layers of bureaucracy
• Accelerating the reduction in our property costs
• Investing in our underwriting, sales and returns capabilities

Exploring options

Speaking about Aviva’s efforts to refocus its portfolio, she continued: “We exploring our options for France, Poland and the remainder of our Italian businesses and our joint ventures – these are complex businesses with multiple stakeholders and I want to be direct in saying that it will take time for us to reach a conclusion.

“We are decisive, we are focused on delivery and as you can see one by one, we are ticking them off.”

She pointed to some examples of this – in September Aviva sold the majority of its Singapore business to a consortium for £1.6bn – it will complete the deal next week, two weeks ahead of expectations.

And the sale of Aviva Vita Italy, with its completion is expected in Q2 2021.