Aviva, a company formed in 2000 through the merger of Norwich Union and CGU, had previously pursued a global expansion strategy. This approach led to the accumulation of a substantial overseas portfolio, spanning across Europe, North America, and Asia. However, under the leadership of Blanc, who took the helm in 2020, the company has shifted its strategy to focus on domestic markets.
Within a relatively short period of 18 months, Blanc oversaw the divestment of eight overseas units. These units were located in various countries, including France, Italy, Poland, and Singapore. The sale of these units resulted in Aviva raising over £8 billion, which has been utilized to restore investor confidence. The company has achieved this by providing sizeable capital returns to its investors.
Blanc’s comments suggest that the company is intentionally moving away from its previous global expansion strategy. Instead, Aviva is focusing on its core domestic markets, aiming to strengthen its position and improve its financial performance. The decision to divest its overseas units has allowed the company to concentrate on its core business, reduce complexity, and improve efficiency.
The successful divestment of the overseas units and the subsequent capital returns have contributed to restoring investor confidence in Aviva. The company’s new strategy, as outlined by Blanc, marks a significant shift in its approach to growth and expansion. By focusing on its domestic markets, Aviva aims to create a more sustainable and profitable business model.
The change in strategy is expected to have a positive impact on Aviva’s financial performance and competitiveness in the market. The company’s decision to concentrate on its core business and reduce its global footprint is likely to result in improved efficiency, reduced costs, and enhanced profitability. As Aviva continues to implement its new strategy, it will be important to monitor the company’s progress and assess the effectiveness of its approach.