Belfast Telegraph

Insurance giant Aviva in new £400m cost-cut drive

Insurance giant Aviva has outlined plans for a further £400m in cost savings and efficiencies over the next two years.

The group's previously-announced decision to axe its 7,600 member final salary scheme in the UK next April will help deliver some of the savings.

But the firm is not planning large scale redundancies to achieve its latest cost-cutting measures, having already slashed its workforce by almost a fifth since 2007.

Aviva also updated the market on third quarter performance, reporting a 26% leap in UK sales to £2.4bn

This took UK sales in the year so far to £12.3bn, up 16% on a year earlier, while worldwide new business rose 5% in the first nine months of 2010.

Aviva has earmarked £200m in efficiencies and £200m in cost savings by the end of 2012, of which around half will come from the UK.

This comes after the life and pensions arm cut £500m between 2007 and 2009 - a move which saw it cut its headcount by 19%.

Aviva also announced plans in April to shut the UK final salary pension scheme to future accruals, which will save it £50m a year in funding costs.

Andrew Moss, chief executive of Aviva, said the group was on track for "strong profitable growth" for the full year.