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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
