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Aviva confirms 1,500 job cuts in wake of Friends merger

Aviva is preparing to cut 1,500 roles from the new company created following the planned merger with Friends Life

In a note sent by the insurer to shareholders ahead of its March annual general meeting, Aviva says the cuts – out of a combined workforce of around 31,500 – will be part of cost savings “in those areas where it identifies there to be duplication”. Aviva says no specific teams, roles or locations have been identified at this stage. It aims to make £225m of savings in total.

In November, analyst BNP Paribas predicted 40 per cent of Friends Life’s staff costs would be cut as part of the deal.

An Aviva spokesman says: “This acquisition is financially and strategically compelling. It will increase our cashflows, reduce our leverage and support continued growth in our dividend. It also secures our leadership position in our home market and gives greater flexibility to drive growth in other parts of the Aviva group.

“As a result of this transaction, Aviva expects to deliver approximately £225m of annual savings by the end of 2017.”



Equity release hits record level

Providers lent a record amount to equity release customers last year. According to figures published last week by the Equity Release Council, £1.4bn was lent in 2014, which was 29 per cent higher than the £1bn released the year before and 14 per cent higher than the previous record of £1.2bn in 2007. A total […]

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Gross annual lending is down again

Gross annual lending fell for the second consecutive month in December, according to figures published last week by the Council of Mortgage Lenders.  Lending was down 1 per cent year-on-year to £16.5bn. Lenders advanced the same in December as the month before. This means the gross lending estimate for Q4 2014 is £51.6bn – down […]

Doug Hall

60 Seconds with… Doug Hall, director, 3mc

You have recently started a column for Mortgage Strategy on the commercial sector. What are the sector’s prospects in 2015 and what advice would you give brokers looking to it as a new source of income? 2015 looks like it will be a good year for commercial lending, with the economy strengthening and investors showing […]

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Company sick pay – new findings

Research by insurer LV= suggests that some 11 million employees in the UK have no company-paid sick leave entitlement. So if an employee from within the above grouping cannot work through illness or injury for any period of time, their only income would likely be that provided by state benefits alone.


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