Won't confirm or deny: Aviva stays quiet on Australian exit rumours

funds-management-business/money-management/chief-executive-officer/

23 April 2009
| By John Wilkinson |

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS