Aviva share price down as group unveils management changes

Shares in Aviva (LON:AV) have slipped lower in London in today’s session as the company unveiled senior management changes. The move came after the blue-chip insurer recently promoted insider Maurice Tulloch to the top job.

As of 10:04 BST, the Aviva share price had given up 0.75 percent to 422.40p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.43 percent lower at 7,490.44 points. The insurer’s shares have lost just under a fifth of their value over the past year, as compared with about a near one-percent gain in the Footsie.

Management changes at Aviva

Aviva announced in a statement this morning that it had decided that Andy Briggs would step down as CEO UK Insurance from today, while staying with the company until October 23 to support an orderly transition. He will be succeeded by Angela Darlington, currently Aviva's Group Chief Risk Officer. The company further said that chief executive Maurice Tulloch will lead a review of the insurer’s UK businesses.

In the company’s international division, Colm Holmes, CEO of Aviva Canada and Global Corporate & Speciality, and Patrick Dixneuf, who becomes CEO of Aviva’s European businesses and remains as CEO of Aviva France, will join Aviva’s Leadership Team. The insurer said that as a result, it will not seek to appoint a new CEO International, or the role filled by Tulloch before he took the top job.

Analysts on blue-chip insurer

The 16 analysts offering 12-month targets for the Aviva share price for the Financial Times have a median target of 497.50p, with a high estimate of 575.00p and a low estimate of 430.00p. As of April 19, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market.

Aviva is scheduled to hold its annual general meeting on May 23.