New York, NY -- (SBWIRE) -- 05/28/2013 -- Many clients of Perry Mandera marine and entrepreneur read a report recently about Aviva, in which it was announced that the group had experienced a rise in new business values during the first quarter – demand has risen both in its home market of Britain, as well as in Asia. This has helped to offset the weakness in Italy and Spain.
New business value is considered to be an important measure of growth, and Aviva’s has risen by eighteen percent in just three months. Mark Wilson, the chief executive, provided his first performance update of the year yesterday – he stated that the firm was definitely back on track and that it was now likely that they will be able to meet their cost saving target of £400million. The figures, Wilson added, demonstrate clear signs of growth, but he is still aware that Aviva has challenges which it must face. He described the progress as ‘satisfactory’ but clients of Perry Mandera ITA member noted that there is still a lot which must be done for the shareholders of the firm.
Perry Mandera coach clients noted that the Aviva’s performance was at its strongest in the UK, where its new business value rose by thirty three percent. However it has also done exceptionally well in the Asian market, where there has been a twenty nine percent increase. Unfortunately, its performance in Italy and Spain was much weaker – Wilson describes the figures for these particular countries as ‘disappointing’.
Wilson, who was once the head of rival group AIA, joined Aviva in 2012, when poor share price performances and spiralling costs resulted in the investors’ revolt, which forced the previous CEO into retirement. John McFarlane, the chairman of the firm, then created a review in which he recommended creating cost savings by closing down or selling several of Aviva’s underperforming units across its asset management and insurance operations.
Now, Perry Mandera Chicago clients note that Aviva is doing considerably better. However, the firm has announced that as part of its on-going cost-cutting measures, it intends to let at least two thousand employees go – this is roughly five percent of its total workforce. These job cuts will take place gradually, over the course of the next six months. In addition to this, the management team has agreed to a pay freeze, so that salaries will remain at the same level as last year, and they have not awarded any bonuses to directors for 2012.
Aviva has managed to turn itself around following the serious financial troubles it faced in 2012. The CEO of the firm released a trading statement, detailing the progress which has been made, as well as the measures they intend to take to make further savings in the coming year.
Name: Kevin Gumther
Location: New York, New York