Insurer RSA is bidding to buy Aviva’s general insurance business.
Aviva is, of course, the daft name for Norwich Union. It is still heavily based in Norwich — county town of Norfolk, where I live. It should never have abandoned the name association — for that city is the place that gives the company its identity. It is also, I think, the biggest employer there. I can imagine that the local workforce will be decimated if RSA win their bid. Cuts are always the way in which these bids are paid for.
The result is obvious — the people of Norwich will pay for the enormous bid costs that this move which will add no value to anyone bar City manipulators will impose.
Aviva’s directors should have kept their original name — and should continue to say said no now, for Norwich.
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Not only Norwicjh but rejecting the bid was commercial good sense. RSA only wanted to cherry pick the parts they wanted so Aviva would have still been in the general insurance business anyway. Also they are trying to buy it on the cheap and any first approach should be rejected on principle unless the seller is desperate. Well done Aviva for being sensible – wake up shareholders (especially Standard Life a competitor) and get real. A share yielding over 7% with 2 x cover is well worth holding.