Aviva CEO Amanda Blanc has estinguished adviser hopes of resurrecting some AIG Life products as it continues the integration of the firm following its acquisition in April.
Answering a question from Health & Protection on the Aviva takeover of AIG, and whether it would reconsider discontinuing some AIG products, particularly international ones, Blanc refused to be drawn and said “The AIG integration is going very well.”
Blanc told Health & Protection that Aviva did not want to continue with two sets of similar products.
However she added that the insurer was “looking for synergy benefits,” and would be “looking at continuing some AIG and Aviva products”.
Blanc was asked the question during a media call this morning to discuss Aviva’s half-year results.
In the wake of of Aviva wrapping up its acquisition of AIG Life in April, Richard Brough, sales manager at The Insurance Surgery, feared the potential loss of AIG Life’s expat cover.
These concerns were subsequently echoed by Andrew Wilkinson, director at Moneysworth at Health & Protection’s IPMI Summit a month later.
In May Health & Protection reported that several advisers were lamenting Aviva’s decision to withdraw the cover.
In June, Health & Protection reported that Aviva would be closing almost all AIG Life products to new business this month, with any new quotes needing to be submitted before 16 August and subsequent applications given a further 30 days for submission.
Only AIG Life UK’s high net worth offering was being largely retained as Aviva said it wanted to keep this speciality and the “strong partnership distribution” while single-tie distribution would continue.
In its report, Aviva said that the AIG integration was on track, resulting in Aviva becoming the “clear number one” in the protection market.
Aviva saw its protection sales grow by 49% to £205m for the period – driven by the acquisition of AIG in April 2024. Excluding AIG, sales were consistent with the prior period as growth in group protection was offset by lower individual protection sales.
Aviva said today: “We completed the acquisition of AIG’s UK protection business for £453 million on 8 April, accelerating growth in the UK protection market.
“The acquisition will broaden distribution, with over 2.5 million customers across individual and group protection, and deliver capital and expense synergies.”