The UK's largest insurer, Aviva, has announced it made a loss of £2.7 billion during 2012, causing its share price to drop by over 12%.
The company's life insurance business suffered a 3% loss, down from £917 million to £887 million.
The loss is much larger than the £87 million reported in 2011, and follows a series of cost-cutting measures by Aviva over the past year.
In December last year the company announced it was selling off its US annuity sector in a deal worth £1.1 billion, creating a reported write-down of £3.3 billion. Around 800 jobs have also been cut across divisions in the UK.
All executive director annual bonuses have been withdrawn following news of Aviva's losses.
Chairman John McFarlane said: "While we appreciate the considerable progress that has been made on a number of fronts, we do not believe the overall situation of the group warrants bonuses for executive directors for 2012 or pay rises for 2013."
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