British insurance giant Aviva has revealed a structural shake-up and plans to sell off its Hong Kong business as it aims to slash annual costs by £300m.
Aviva said it was dividing its businesses into investments, savings and retirement; UK life; Europe life; Asia life, and general insurance.
"I am committed to running Aviva better," said chief executive Maurice Tulloch, who took over the top job in March. "We will be more commercially focused, manage costs rigorously and be more disciplined in how we invest."
I am committed to running Aviva better"
Tulloch, a company veteran who became chief executive in March after the departure of Mark Wilson, is under pressure to better define Aviva's strategy and boost its share price, which has fallen by a fifth over the past five years.
Aviva has also agreed the sale of its Hong Kong joint venture, called Blue, to partner Hillhouse Capital, and is in talks to strike similar deals for its businesses in Vietnam and Indonesia.
The insurance giant however announced it was keeping its Singapore operation following a review of its Asian businesses, raising speculation it could not get a satisfactory price for it. It also said it was keeping its joint venture in China.
The group outlined its three-year targets, including the previously announced aim to slash annual costs by £300m.
The insurance giant had already announced in June that it would axe 1,800 jobs to cut costs, just a few months into Tulloch's tenure following his appointment in March.
Aviva - which employs around 30,000 staff in total - said at the time that savings will also be made across central costs, contractor and consultant spend, reduction in project spend and in other areas.