Aviva overhaul could see Hong Kong exit
British insurance company Aviva announced a significant restructuring that could see it quitting a variety of Asian countries.
Aviva, whose chief executive Maurice Tulloch launched a strategic cost-slash review, stated in a statement that it would leave Hong Kong-and to explore options for divisions in Vietnam and Indonesia.
The London-listed company added, however, that in China and Singapore, it will retain businesses.
“Today, we are going to present our approach to streamline Aviva into a leading global savings, retirement, and insurance business providing for our customers, shareholders, and communities,” Aviva said in a statement.
“Such steps will deliver higher returns to our investors. In the same period, we remain committed to our ambitious payout strategy, our deleveraging program, and retaining the financial strength of the company.”
Aviva had already said in June that it was planning to cut 1,800 positions over the next three years, out of a global workforce of 30,000, as part of a Tulloch-led turnaround.
Wednesday’s report sent Aviva’s share price dropping 4.21 fold to rest at 400.70 pence on London’s declining FTSE 100 benchmark in late morning deals.