Aviva UK head in shock exit
A SHOCK change of roles at major City insurers saw Aviva’s high-flying UK chief executive Mark Hodges leave to become head of insurance broker Towergate yesterday.
Aviva has moved in highly regarded insurance veteran Trevor Matthews, formerly of Friends Provident and Standard Life, to replace Hodges.
The move is Aviva’s second high-profile exit in five months after European head Andrea Moneta left in January.
Both Hodges and Moneta had been tipped as successors to Aviva’s global chief executive Andrew Moss. Their sudden departures may fuel speculation that Moss intends to stay in post for longer than expected.
“The extent of this announcement and the complicated nature of it will, we believe, give rise to some speculation about the group’s long term leadership,” said Panmure Gordon analyst Barrie Cornes.
Matthews’ move is also a surprise, as he told City A.M. in March he was stepping down as chief executive of Friends Life with a view to returning to Sydney with his family within three years. He was due to start a newly-created post of vice chairman at Friends Life yesterday, after handing the chief executive’s reins to Andy Briggs, but will now not take up the role.
Matthews is seen as a safe pair of hands for Aviva, but until he finishes his notice period at Friends Life, Aviva will be without a UK chief executive.
Hodges was Aviva’s chief executive for 18 months and head of its life operation before that. He will head Towergate Insurance from 1 October and is expected to lead it to an initial public offering. He replaces retiring chief executive Andy Homer, who remains a non-executive director.
“The opportunity to take the lead at Towergate, Europe’s largest independent insurance intermediary…was irresistible,” Hodges said.
A Friends Life spokesperson said it would reassign Matthews’ responsibilities to others in Briggs’ leadership team. Briggs started as Friends Life chief executive on 1 June.