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Aviva 'eyes' Co-operative takeover

Insurance giant Aviva is based in Norwich. Credit: Chris Radburn/PA Wire/Press Association Images

Norwich-based insurance giant Aviva is reportedly eyeing a £650 million takeover of The Co-operative's insurance business.

Aviva is among a number of firms considering bidding after the Co-op put the division up for sale last month to raise cash to plug a capital shortfall - which is threatening its swoop for 632 Lloyds Banking Group branches, according to The Sunday Times.

Aviva eyes Co-op's insurance business

Insurance giant Aviva is eyeing a £650 million takeover of The Co-operative's insurance business, according to reports.

The Sunday Times claims the Norwich-based insurance giant is among a number of firms considering bidding after the Co-op put the division up for sale last month.

The reports come less than a week after Aviva announced it would cut around two thousand jobs worldwide.

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Union furious over Aviva jobs cut

Union chiefs have reacted angrily to the news that insurance giant Aviva is to axe 2,000 jobs.

In a statement from Unite, Britain's biggest union, said it fears for Uk jobs.

Once again finance staff are being forced to pay the price for boardroom failure. Aviva has also announced plans to slash redundancy pay, with longer serving staff losing more than a quarter of their entitlement. To cut redundancy pay so drastically when there is deep uncertainty over job security is a callous and disgraceful act.

Since the departure of CEO Andrew Moss less than 12 months ago, the UK workforce, which is the backbone of the company, has suffered job cuts, pay freezes and now faces an attack on their redundancy terms, when the company is planning more cuts.

– Unite national officer, Dominic Hook

The Union has pledged to oppose any job losses in the UK and the cuts to redundancy terms.

Aviva reviews employment policies

Aviva has told staff it has reviewed employment policies.

"Aviva has decided to introduce a revised redundancy policy for all employees on UK contracts. This will bring Aviva’s redundancy terms in line with market practice in the UK which will remain significantly above the statutory provisions.

"Importantly, the changes to redundancy terms will be implemented in two phases so that those impacted in the next six months will still receive the current four weeks’ redundancy pay for each year of service.

This is intended to minimise the impact on employees and follows consultations with Aviva employee forums and Unite.

Aviva: Statement from CEO

Mark Wilson the Chief Executive issued this statement:

I know this is difficult news for our employees but these changes are essential if we are to remain competitive.

Aviva needs to become a more efficient and agile organisation to unlock its potential. We must take tough decisions on costs to provide our customers with great value products and ensure our future success. I am determined that Aviva gets through this phase of our business transformation as quickly as possible.

– Mark Wilson

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Aviva statement on job losses

Norfolk-based insurance giant Aviva has informed its staff that 2,000 jobs will go over the next six months. The Job losses are around six per cent of the of the workforce.

In a statement the company said:

As part of Aviva’s commitment to employees and unions to inform them as soon as it can about decisions that impact our people, it is communicating the estimated overall scale of changes today. Aviva is consulting with employee representative bodies and will provide further information to its people on role reductions as soon as the detail is available.

These job reductions are part of a programme to reduce expenses across the whole business, including substantial non people related savings. At Aviva’s full year results published in March 2013, it announced it has already realised £275 million annualised cost savings as part of its target to reduce costs by in excess of £400 million.

– Aviva statement
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