AVIVA has abandoned plans to outsource some 450 of its life and pensions jobs to services provider Capita, the Irish Independent has learned.
The outsourcing was expected to be part of a major restructuring that will also see Aviva Ireland cut about 950 jobs over the next two years.
But Aviva this week told trade unions it no longer plans to pursue the outsourcing plan in light of Aviva's loss of its Ark Life joint venture business with AIB.
This means 300 staff working in its life and pensions unit will transfer across to AIB or a new service provider.
The remaining numbers in the life unit are too small to justify the outsourcing, union representatives were told.
Aviva yesterday refused to confirm outsourcing had been abandoned but said it would "clearly have to review" the situation and examine "whether outsourcing is still an option for us to consider in the future".
Brian Gallagher, of trade union Unite, said he would be trying to "pin Aviva down" on what would be happening to more than 150 staff who had been earmarked for transfer to Capita and are not associated with the Aviva/AIB business.
Unite's broader discussion with Aviva on its cost-cutting plans will resume next week, Mr Gallagher said.
He said Aviva this week told Unite that they were "fully committed" to the remaining life insurance business and that the loss of the AIB contract would "create opportunities" for Aviva to offer services it had been excluded from under the AIB deal.