IGAL Mayer, the head of insurer Aviva’s flagship European business, has lost his job in a boardroom shake-up designed to “simplify” management and boost profits.
Alain Dromer, head of Aviva’s fund management arm, and North American boss Richard Hoskins are also set to leave the firm, the insurance giant said yesterday.
“The departure of the North American head may point to a sale of the US life operation sooner rather than later,” said Deutsche Bank analyst Oliver Steel.
“However, we regret the departure of Igal Mayer, arguably the most respected of the group’s operational managers.”
The shake-up is part of Aviva’s strategy of focusing on just 12 core markets, compared to the 30 it operated in at the start of 2010. As a result the firm no longer requires the additional level of regional management.
Instead the firm will be split into two global sectors based on growth potential: developed markets will be led by Trevor Matthews, who currently leads the firm’s British operations, while Asia boss Simon Machell takes charge of the higher growth markets unit.
Aviva has been under pressure to boost profits after its shares fell 30 per cent in the past year.
Andrew Moss, Aviva’s group chief executive said: “The changes will deliver further operational benefits, accelerate delivery of our strategy and provide opportunities for profitable growth.”
Shares closed 2.6 per cent lower yesterday at 299.6p.
INSURER’S MANAGEMENT SHAKE-UP