Aviva posts pre-tax loss of £2.7 billion - Insurance - News - Moneyfacts

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Aviva posts pre-tax loss of £2.7 billion

Aviva posts pre-tax loss of £2.7 billion

Category: Insurance

Updated: 07/03/2013
First Published: 07/03/2013

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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All executive director annual bonuses have been withdrawn following news of Aviva's losses.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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