Departing directors at Aviva given €739,000 as profits plunge
Departing board directors at Aviva's health insurance unit shared a pay-off of €739,000 last year despite plunging profits and falling customer numbers.
Accounts just filed by the Dublin-based Aviva Health Insurance Ireland show pay for the revamped board rose by 132pc to €2.35m last year.
The higher pay bill included termination payments to departing managing director Siobhan Fay and other directors totalling €739,000. This was more than double the termination payments of €315,000 paid out in 2011.
While directors enjoyed bumper salaries, pre-tax profit at the unit plunged 42pc to €7.23m. The decline in profits came as sales rose to €341m last year from €329m.
Against the background of declining profits and an 8pc decline in customers last year, the unit's board was overhauled with eight directors, including Ms Fay, resigning and 10 directors being appointed.
The resignations include three directors appointed in 2012. Ms Fay stepped down as managing director on November 30. UK national Alison Burns was later appointed interim managing director. The report said: "Gross written premiums increased in 2012 due to price increases throughout the year.
"Profit before tax has been adversely impacted by increased claims costs associated with the increased economic uncertainty in Ireland."
Net claims totalled €88.8m last year – an increase of 12.3pc on the €79.1m in 2011.