Tuesday 24 October 2017

Aviva losing cash on every new Irish policy

Nick Webb

Nick Webb

Aviva has told investors that it is losing money on every new general insurance policy it writes in Ireland as as it bludgeons its global operations into shape.

"Ireland's general insurance is kind of an interesting example. Great market position, so we're still market number one with 15 per cent market share. But the kind of key stat here is that we actually lose money at the moment as we write new business. So, a number 46 ranking financially on that," Aviva chief finance officer Patrick Regan told investors last week.

Aviva has unveiled transformational plans to bulk up its balance sheet by selling off up to 16 of its 58 business units. The vast insurance company is hanging on to its Irish business after a painful restructuring process.

"We'd put in the turnaround bucket because we do have a believable plan. This is a plan actually that's quite well advanced already to turn that financial performance around," Mr Regan added.

Aviva has thrown money at boosting its branding in international markets, including the €40m naming rights for Lansdowne Road.

Chairman John MacFarlane added: "The Aviva brand that you can see is very distinctive. I mean, effectively, we own the colour yellow in the countries we're in."

Sunday Indo Business

Also in Business