Latest news with #AmandaBlanc
Yahoo
16-05-2025
- Business
- Yahoo
UK competition body opens probe into Aviva's Direct Line bid
The UK's Competition and Markets Authority (CMA) has launched a probe into Aviva's proposed £3.7bn acquisition of Direct Line. The competition watchdog said it is investigating whether the merger would lead to a 'substantial lessening of competition within any market or markets in the United Kingdom for goods or services". 'To assist it with this assessment, the CMA invites comments on the transaction from any interested party,' it added. The CMA is seeking feedback from interested parties by 29 May, with its findings from the initial phase of the probe due to be published in July. The two insurers agreed on the merger in December last year, with Aviva offering £3.6bn, or 275 pence per share. Direct Line shareholders would own nearly 12.5% of the issued and to be issued share capital of the combined company. The deal would consolidate Aviva's position in the UK motor insurance market, creating a group with a combined market capitalisation of approximately £16.6bn, according to the Financial Times. UK-based Aviva reported a profit of £705m for the year ended 31 December 2024, a 36% fall from £1.1bn in 2023. At the time of results announcement in February, Aviva Group CEO Amanda Blanc said: 'The proposed acquisition of Direct Line is on track and is a clear opportunity to accelerate our capital-light growth, deliver brilliant service to millions more customers and support the wider development of the UK economy." "UK competition body opens probe into Aviva's Direct Line bid " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Mayor
16-05-2025
- Business
- Business Mayor
UK watchdog launches investigation into Aviva's £3.7bn takeover of Direct Line
The competition watchdog has launched an investigation into Aviva's multibillion-pound takeover of the rival insurer Direct Line. The £3.7bn deal, which was agreed last year, will combine the insurance operations of both companies, in a move that is expected to create one of the biggest car insurers in the country. The Competition and Markets Authority started its phase 1 investigation into the takeover on Wednesday, a procedural step that gives it up to 40 working days to evaluate the deal's possible impact on competition in the sector. The deadline is set for 10 July, at which point the regulator will either give the merger the green light or proceed to a more in-depth phase 2 investigation. Aviva, the UK's biggest insurer, agreed to buy the rival Direct Line for £3.7bn last year. Aviva's chief executive, Amanda Blanc, has expanded its business in the UK, Ireland and Canada, while selling off subsidiaries abroad. Both companies are among the biggest insurers in the UK. Direct Line, which owns brands such as Churchill and Green Flag, also offers home, travel, pet and life insurance. Aviva sells a range of insurance, wealth and retirement products and has more than 20 million customers. Adam Winslow, who became the chief executive of Direct Line just over a year ago, joined from Aviva where he was head of its UK and Ireland general insurance division. Aviva and Direct Line told investors last year they planned to cut 5-7% of the combined group's employee base over three years, equivalent to between 1,600 and 2,300 jobs out of about 33,100. The companies said at the time that the ultimate number of affected roles could be lower because of unfilled vacancies and annual turnover of staff. Prior to the deal, Direct Line had also been undergoing its own turnaround efforts. In November the company said it would axe about 550 jobs in an effort to cut costs. The insurer said 'core brands' such as Churchill would be maintained in the merged group. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The takeover is the latest big blockbuster deal for Aviva, which bought the rival Friends for Life for £5.6bn in 2014.
Reuters
15-05-2025
- Business
- Reuters
Aviva CEO says government investment mandates a "red line" for sector
LONDON, May 15 (Reuters) - A sector-wide push into private assets should help millions of pension savers achieve higher returns and avoid old age poverty as long as the government doesn't seek to dictate how providers invest that cash, Aviva (AV.L), opens new tab CEO Amanda Blanc told Reuters. Seventeen investment firms running trillions of pounds in insurance and pension assets pledged on Tuesday to pump up to 50 billion pounds ($66.38 billion) of additional investment into unlisted firms, property and infrastructure, as the government leans on private capital to fund public projects and boost growth. The so-called Mansion House Accord aims to bolster pension fund returns and encourage UK savers to stop sitting on cash and put more money into higher-growth, productive domestic assets. But there are fears the government could try to compel insurers to support politically sensitive projects or demand mandatory investment levels in riskier assets like venture capital (VC) against the best interests of pension investors. "We think the red line is mandation. We do not believe that is a necessary strategy ... and it is important those VC funds are invested with the interests of the individual pension savers in mind and the trustees have a fiduciary duty to do so," Blanc said, after Aviva posted higher first-quarter general insurance premiums. "These are asset classes which are very, very well known to insurance companies. We've got long histories of investing well and delivering really good returns in those segments." UK pensions minister Torsten Bell has said the accord with pension providers represented a voluntary commitment and there was "no mandation". He also rejected the idea that the government could face pressure to compensate schemes if returns disappointed. BlackRock CEO (BLK.N), opens new tab Larry Fink earlier this week warned of sustained volatility in financial markets, and said investors were now hoarding tens of trillions of dollars in cash amid trade war worries and uncertainty over the U.S. economy. Blanc echoed those concerns and called on savers to engage fully with their pension providers, the majority of which had little to fear from the recent ructions. "We shouldn't get confused about the market volatility that goes on in any particular period of time. We are, as insurers, long term investors. We are not forced sellers. And periods of volatility really do not impact that," she said. "What we know is that 12 and a half million people in the UK will not have enough money to retire if we carry on investing in the way that we do today," Blanc said, citing official data from the Department of Work and Pensions. According to the Pensions & Lifetime Savings Association, the current average annual pre-tax retirement income is around 21,000 pounds, comprising around 9,000 pounds in income from a private pension plus state pension of 11,500 pounds. This compares to the PLSA recommended level for a moderate living standard of 31,300 pounds. ($1 = 0.7533 pounds)
Business Recorder
15-05-2025
- Business
- Business Recorder
UK insurer Aviva reports 9% rise in first-quarter general insurance premiums
Insurer Aviva reported a 9% rise in first-quarter general insurance premiums on Thursday on strong growth in both personal and commercial lines in Britain, driven by the Probitas deal and new businesses. The life and general insurer, which operates in Britain, Ireland and Canada, said it was confident of meeting its 2026 outlook. Aviva's bid to become the largest home and motor insurer in Britain through a 3.7 billion-pound takeover of smaller rival Direct Line suffered a potential snag on Wednesday, after UK's competition watchdog launched a review of the deal. 'The acquisition of Direct Line is firmly on track… and we expect to complete the deal in the middle of the year,' CEO Amanda Blanc said. Aviva said it expects to 'reframe' the group's 2026 targets after the deal closes. The company reported 2.9 billion pounds ($3.9 billion) in general insurance premiums for the quarter ended March 31.
Reuters
15-05-2025
- Business
- Reuters
UK's Aviva reports 9% rise in first-quarter general insurance premiums
May 15 (Reuters) - Insurer Aviva's (AV.L), opens new tab general premiums rose by 9% in the first quarter, it reported on Thursday, saying its deal to buy the Probitas platform and new business had driven growth in personal and commercial lines in Britain. However, the company, which also provides wealth and retirement services, said its wealth business recorded net flows of 2.3 billion pounds ($3.06 billion), 14.8% lower than the same time a year ago. Flows at the end of March were hit, it said, as a workplace scheme switched to another provider. By the end of April, they had recovered to 4 billion pounds and the company said it was confident of meeting its 2026 outlook. It also said its deal to buy smaller rival Direct Line (DLGD.L), opens new tab would go ahead even after the UK's competition watchdog on Wednesday launched a review of the deal. "The acquisition of Direct Line is firmly on track," CEO Amanda Blanc said in a statement. "We expect to complete the deal in the middle of the year." Aviva also said it expected to reframe the group's 2026 targets after the deal closes, without giving further detail. In recent years, companies seeking to offload pension scheme risks from their balance sheets have led to a boom in British pension insurance deals. Aviva said it expects to remain active in bulk annuities - insurance for corporate defined benefit, or final salary, pension schemes - but that volumes were likely to be lower than in 2024 as it focuses on boosting margins. In March 2024, it agreed an acquisition to re-enter the historic Lloyd's insurance market by buying insurance platform Probitas. The company, which operates in Britain, Canada and Ireland, reported 2.9 billion pounds ($3.9 billion) in general insurance premiums for the quarter ended March 31. It said its bulk purchase annuity volumes were broadly consistent with the same period last year at 1.3 billion pounds. ($1 = 0.7536 pounds)
