Aviva Has Been Rebalancing Its Portfolio to Focus on Three Core Businesses and Markets

With the divestment of peripheral operations and geographies, Aviva has tilted its portfolio to a regional focus and a more balanced portfolio across product lines. International growth took the company increasingly away from general insurance. This is back to the levels of contribution seen historically and should grow further with the acquisition of Direct Line. Aviva has transformed its business toward capital-light and technical risk operations. Health insurance is increasingly important, serving over 4.5 million retail customers and around 3.3 million customers who get health insurance through their employment. With elevated national health service waiting lists, there is increasing demand for health insurance. In protection, the company’s products are split equally between individual and group insurance. Using individual protection as a benchmark, 10% of sales are direct, 10% are sold without advice but intermediated, and protection sales are heavily intermediated. Aviva is looking to make individual protection increasingly automated. Health and protection make up around 10% of operating profit from UK and Ireland life and savings.