Proposed changes to Irish business and European operations
Proposal to combine Aviva Ireland with Aviva UK to form a new UK and Ireland Region with ambition to become the most competitive insurance provider in Ireland
Aviva proposes to restructure European regional operations to strengthen the business and create a leaner cost base
Both these proposed initiatives could result in a total reduction of up to 950 roles in Ireland over two years, subject to consultation, comprising 180 roles from Aviva Europe and 770 from Aviva Ireland.
Aviva Ireland
Ireland is one of Aviva's 12 priority markets and the company is fully committed to ensuring that its Irish customers continue to receive excellent service and products at competitive prices.
However, the macro-economic environment is challenging and there is a pressing need to ensure the Irish cost base is at a market-leading level to secure the long-term success of the business.
Following a detailed structural review, Aviva is proposing to make its Irish business part of a new UK and Ireland region, aligning many of the activities and services provided for customers. The Irish business would benefit from Aviva UK's investment in technology, underwriting capability and significant purchasing power, enabling Aviva Ireland to offer more competitive pricing and to introduce new products and services. Aviva will also investigate the feasibility of establishing additional centres of excellence in Ireland to serve customers in the UK, as the business grows. This could potentially mitigate the reduction in roles in Ireland by approximately 200.
There are currently 1,770 employees in the Aviva Ireland business. The company anticipates that if the proposals were implemented the number of roles remaining in Ireland would be between 1,000-1,200 (including roles which may potentially be outsourced). Aviva will ensure that any new structures or outsourcing proposals are appropriately resourced and will engage with the Central Bank of Ireland in relation to such structures or proposals before implementation.
Any proposed structural changes in the Irish business are not expected to begin to take effect before March 2012 and Aviva anticipates that it could take up to two years for a new structure to come into full effect. The Irish and UK boards are in the process of evaluating these proposals, which will require approval by the respective boards and relevant regulatory bodies. In parallel, Aviva will engage with employees and their representatives on the proposed changes.
Throughout this process, Aviva will continue to provide excellent service to customers and business partners.
Aviva Europe
Following a six-month review of Aviva's pan-European operations, the company is also proposing to restructure its regional operations, streamlining the administration and support functions across the region. The restructure will reduce costs and increase Aviva Europe's ability to remain competitive and deliver sustainable, profitable growth. Up to 180 Aviva Europe roles in Ireland will be impacted as a result of this proposed restructure.
Overall
Igal Mayer, chief executive of Aviva Europe said:
"In Ireland, we must improve our competitiveness to ensure we continue to provide customers with attractive products, good value and excellent service. We're fully committed to keeping customer-facing roles in Ireland and to minimising the impact on our employees. We appreciate that there will be a period of uncertainty for our people over the next few months as the proposals are explored further, and we'll make every effort to support them during the consultation period and beyond.
"The proposed changes to our regional operations will deliver a stronger, leaner business, at the heart of which is a firm focus on meeting our customers' needs."
Aviva will endeavour to achieve as many of the potential redundancies as possible through voluntary means.