"We aim to continue enhancing our propositions and products with the combined knowledge and expertise that we have gained through the acquisition of the AIG Life business and its talented people."
- Fran Bruce, Managing Director of Protection at Aviva
On the 9th April 2024, Aviva announced that, following receipt of all necessary approvals, it had completed the acquisition of AIG Life UK from Corebridge Financial, Inc, for consideration of £453mn. At the time, AIG Life UK provided a full suite of individual and group protection products with 1.3mn individual protection customers and 1.4mn group protection members.
Today, Aviva has made known its protection business plans going forward. The provider is keen to retain several attributes of AIG Life’s business, including its High-Net-Worth channel and “strong partnership distribution.”
Distributors who’ve worked closely with AIG Life in the High-Net-Worth market will continue to be able to offer AIG Life products; AIG Life protection products remain open for single-tie distribution partners and selected specialist firms placing High-Net-Worth business, except Care Cover with Whole of Life (WOL) Insurance – this product will close to all new quotes and applications at 23:59 on the 15th August 2024.
This decision was made as Aviva doesn’t currently offer some of the options available within this proposition but will be exploring how it can grow its capabilities in this area as a key focus for the combined business.
After reviewing AIG Life’s core individual & group protection products, Aviva has decided to continue with the Aviva-branded core propositions only, for new intermediated business. The final submission date for AIG-branded quotes from intermediary distributors will be 23:59 on the 15th August 2024.
Aviva recognises this as a “significant phase of the integration” which aims to give stakeholders a clear position on new business products and certainty to customers and intermediaries of a single product offering.
Any quotes or applications submitted before this date will remain valid and Aviva will be working with intermediaries to support any pipeline business. All group protection quotes or applications already in the pipeline will be guaranteed until the 15th November 2024, or the quote validity period stated on the quote if earlier. All individual protection quotes will remain valid for thirty days while applications submitted will remain until the 15th February 2025.
Aviva has confirmed that there are no planned changes to existing insured AIG Life group protection schemes; the rate review process, policy administration, and individual assessment of claims will continue as usual. New or existing AIG Life customers will also still have access to AIG Smart Health as a non-contractual benefit – this could be changed or withdrawn in the future.
Phil Willcock has decided to step down as CEO of AIG Life later this year. Over the last five years, he has played a crucial role both in the company’s success and in the sale of its books to Aviva.
Nick Austin, current Managing Director of Individual Protection at AIG Life, has been appointed to the newly created role of Protection Commercial Director, leading the combined pricing, reinsurance, and scheme underwriting teams.
Additional undisclosed appointments have also been confirmed for AIG Life leaders in risk, compliance, IT and HR.
Finally, Fran Bruce has been appointed as Managing Director of Protection for the combined business, subject to regulatory approvals.
“We’re pleased to be able to give clarity to our colleagues, customers, intermediaries and partners about our plans for our future product offerings. There are great elements about each of our respective propositions that complement each other well and we believe the combined features will help us realise our growth ambitions in the protection market,” explained Fran Bruce, Managing Director of Protection at Aviva.
“Over time, we aim to continue enhancing our propositions and products with the combined knowledge and expertise that we have gained through the acquisition of the AIG Life business and its talented people,” she concluded.
