LONDON (ShareCast) - (Sharecast News) - Aviva has promoted international insurance boss Maurice Tulloch to the role of chief executive with immediate effect.
His appointment, after what was seen to be a two-horse race with UK insurance chief Andy Briggs, follows the surprise departure of Mark Wilson in October, who was replaced on an interim basis by chairman Adrian Montague.

Falkirk-born chartered accountant Tulloch joined the FTSE 100 group in 1992 and became a member of the board in June 2017 as CEO of the International Insurance business and chairman of Global General Insurance, where he has had responsibility for the group's life insurance and general insurance operations in France, Canada, Ireland, Italy, Poland, Turkey and India.

This followed his turnaround of the UK and Irish general insurance arm, the largest of Aviva's general insurance businesses, and stints as boss of Aviva Canada and chief operating officer of Aviva Ontario.

Tulloch said there is "a clear opportunity to realise Aviva's significant but untapped potential. Aviva is financially strong, we have a well-known brand and excellent businesses. But there is more to do to improve returns for shareholders."

He said his main focus will be on "the fundamentals of insurance and giving our customers the best possible experience - being there when they need us, protecting what's important to them and helping them save for the future".

Montague, who had reverted back to his non-executive chairman's role, said Tulloch "knows the business inside out".

"He has led our businesses in the UK and internationally and built strong teams across life insurance and general insurance. Maurice knows our strengths, knows where we need to improve and has a deep understanding of insurance and customers' needs. He is exceptionally well qualified to re-energise Aviva and deliver long-term growth."

The company also highlighted that Tulloch made acquisitions in Canada and Ireland, and developed new strategies in Italy, France and Ireland, where diversifying distribution, reducing costs and optimising capital led to improve profitability.

Aviva shares were up 1% to 436.4p on Monday, having apart from dips in 2016 and in December, travelled in a sideways channel not too far from 500p since 2010.

Analysts at BoA Merrill Lynch said they expected a "somewhat muted reaction" until the new CEO's intentions are made clear and that investors "may be concerned that the appointment does not bring much change, also that highly regarded Andy Briggs may leave".

Barclays, having last week called for "radical change" from any new CEO to alter the market's view that Aviva is a value trap, said there was around £22-£26bn of value that could be created for shareholders by disposing of the international businesses and leaving a focused and differentiated UK life and non-life franchise.

"While initially we do not believe Maurice Tulloch would have been the most likely of these candidates to go down the disposal route, especially since the press release credits him for leading the acquisitions of the RBC GI business in Canada but also Friends First in Ireland," the Barclays analysts said they believe the protracted process of bringing in a new CEO and the rumours of external candidates "shows the board's desire to see change within the group and we believe this gives Maurice Tulloch an expanding mandate and will be open to driving value growth at Aviva".

Furthermore, Barclays sees the dividend as unlikely to be cut, given that Wilson already restructured the balance sheet.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE