Won't confirm or deny: Aviva stays quiet on Australian exit rumours
Aviva is not commenting on reports that its Australian operation has been put up for sale.
Aviva Group general manager, marketing, Tim Cobb told Money Management that he was unable to confirm or deny the information suggested in today’s Australian Financial Review, but said nothing should be implied by him not commenting.
“We never comment on this type of speculation,” he said.
Last month, the Australian executive team flew to Aviva’s Singapore office for a meeting. Cobb said this was just a routine quarterly briefing by the Australian staff to the Singapore regional headquarters.
He denied the trip was in connection with any potential sale.
In recent years, the Australian operations have reported to Aviva’s Singapore office rather than London.
Historically, Aviva Investors, when it was Portfolio Partners, also reported to London, but since last year this division has reported to Singapore.
Apart from a funds management business in Australia, Aviva also owns the Navigator platform and has a historic risk insurance business.
But Aviva’s Australian operations have suffered, as chief executive officer Allan Griffiths told Money Management last month.
The Australian operation reported an after tax profit of $61 million for last year compared to $96 million in 2007.
Griffiths said while the risk business continued to perform well, Navigator’s profits had been particularly hit by the downturn in investment performance.
“Platform sales are lower and the revenue from fund flows is down,” he said.
“In 2007 we managed $27 billion through the platform; last year it was down to $19.3 billion.”
Recently, the Australian company’s UK parent reported a loss of $1.93 billion after tax and announced it was cutting 110 full-time jobs in its risk business division, Norwich Union Life. It is also cutting almost 600 contract jobs.
The Australian operation has announced no redundancies to date.
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
