Aviva leaps on plans to slimline operations

Shares in Aviva leapt on Monday following reports which emerged over the weekend which are saying the insurance giant is set to sell or wind down between 10 and 15 of its 58 businesses.

No indication has been given as to which businesses will be targeted, although speculators have pointed towards the company reducing its stake in Dutch insurer Delta Lloyd and slimming down its US life business.

The news follows a strategic review, led by Chief Financial Officer, Patrick Regan, under which each business unit was rated based on its growth potential and return levels.

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The Telegraph has reported that many of the units are said to be considered "mediocre" in terms of their performance.

The changes will mean that the group is likely to suffer a decline in both profit and net asset value, although the company is likely to say in an upcoming presentation that a tangible increase in net worth will make this worthwhile.

Lord Colin Sharman on Monday retired as Chairman of the company and is being replaced by John McFarlane.

The share price rose 3.59% to 282.40p by 15:53.

NR