Aviva PLC
07 March 2007
News release
7 March 2007
NORWICH UNION ANNOUNCES OUTSOURCE ADMINISTRATION AGREEMENT WITH SWISS RE
Aviva plc ('Aviva') announces today that its UK life business, Norwich Union
Life, has reached an agreement to outsource the administration of almost three
million of its existing life and pension policies to Swiss Re.
In October 2006 the Norwich Union Life management team set out the strategic
direction for the company. A key element of this is to significantly rationalise
the company's legacy systems, accelerating the transformation of customer
service. The combination of today's announcement and the efficiency targets
announced in September 2006 will significantly reduce the risk of expense
related experience variances from 2009. They will also enable Norwich Union to
build on its market leading position in distribution, brand and products.
Swiss Re will take on the administration of the policies from October 2007,
enabling Norwich Union to start decommissioning 220 of its 550 product systems.
The customers, their policies and their funds will remain actively managed by
Norwich Union. Customers will see no changes to their policy terms and
conditions, the premiums they pay or the benefits they receive. Morley Fund
Management will continue to provide investment management services. Norwich
Union retains the exclusive rights to market its products to these customers.
Norwich Union has chosen to work with Swiss Re due to Swiss Re's excellent
systems capability, its experience in the life and pensions sector and its
strict focus on customer service. As part of the agreement approximately 1,000
Norwich Union employees will transfer to Swiss Re under TUPE arrangements.
Mark Hodges, chief executive of Norwich Union Life, said: 'This is a major
strategic development for Norwich Union. We have set out a clear plan to
materially reduce the complexity of our life and pensions operations. This
innovative agreement with Swiss Re will enable us to improve customer service
further and make us a much more efficient organisation. Our distribution,
product and brand strength coupled with a leaner organisation will be a driver
of future growth.
'We are confident this is the right solution for our legacy business. These
customers and their funds will remain actively managed by Norwich Union.'
- ends -
Enquiries:
Analysts:
Charles Barrows, investor relations director +44 (0)20 7662 8115
Jessie Burrows, head of investor relations +44 (0)20 7662 2111
Media:
Sue Winston, head of group media relations +44 (0)20 7662 8221
Rob Bailhache, Financial Dynamics +44 (0)20 7269 7229
James Evans, Norwich Union +44 (0)7800 699525
Louise Zucchi, Norwich Union +44 (0)7800 699664
Notes to editors:
• Aviva plc is the world's fifth-largest insurance group and the UK's largest
insurance services provider (based on gross worldwide premiums at
31 December 2005), and is one of the leading providers of life and pension
products to Europe, with substantial positions in other markets around
the world.
• Aviva's principal business activities are long-term savings, fund management
and general insurance, with worldwide total sales of £41.5 billion and
assets under management of £364 billion at 31 December 2006. Norwich Union
is the UK trading brand of Aviva.
• The Aviva media centre at www.aviva.com/media includes images, company and
product information and a news release archive.
This information is provided by RNS
The company news service from the London Stock Exchange
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