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Aviva says Tom Stoddard will step down as its chief financial officer by mutual consent from 30 June

The insurer said Jason Windsor, currently chief financial officer of Aviva UK Insurance, will become the group’s interim chief financial officer on 1 July 2019
Handshake
It added that Stoddard will remain with the group until 31 December 2019 to support an orderly transition

Aviva PLC (LON:AV.) has announced that Tom Stoddard will step down as its chief financial officer and as a director of the insurer by mutual consent from 30 June 2019. 

In a statement, the FTSE 100-listed firm said Stoddard will remain with the group until 31 December 2019 to support an orderly transition.

READ: Aviva reportedly mulling break up of UK business

It added that Jason Windsor, currently chief financial officer of Aviva UK Insurance, will become the group’s interim chief financial officer on 1 July 2019. 

The company pointed out that Windsor, who joined Aviva in 2010, has extensive experience of the group, including as chief capital and investments officer.

Stoddard commented: “Aviva has a strong finance team, and it is now time for me to clear the way for others to step up, as I consider new opportunities. Aviva is in a strong financial position with a bright future ahead of it.

The news comes a day ahead of the scheduled announcement from Aviva's recently appointed chief executive officer, Maurice Tulloch on his long-awaited future strategy for the business.

UK break-up planned?

According to a recent report in the Financial Times, Tulloch unveil a big shake-up which could include a break-up of Aviva’s UK business.

Such a move would reverse Aviva’s decision to merge its two main businesses in 2017.

Tulloch, who was appointed to the top job at the insurer in March this year, has said he wants to “re-energise” the group and is believed to want to simplify the business.

At Aviva’s recent  annual meeting he said the company was “still too complex”.

Along with a potential plan to simplify the group, Tulloch is also likely to announce a push to make Aviva more efficient as costs have been rising in recent years.

It's not unusual

In a note to clients, analysts at Shore Capital commented: “After the departure of the UK CEO Andy Briggs, this is another high profile exit from the management team at Aviva. New CEO Maurice Tulloch is clearly keen to put in place his own team to deliver the increased pace of change that he has promised.

“This is not unusual, and the movement of the UK CFO into the group role is an obvious choice given the size of the UK operations within the group. The fact that we believe the UK operations will be returned to separate life and non-life entities also means that the role of UK CFO might not exist for much longer.”

They added: “Our fair value, based on profit attributable to shareholders, of 430p indicates little upside at this point and we reiterate our Hold recommendation.”

In late morning trading, Aviva shares were 1.1% lower at 413.20p.

 -- Adds analyst comment, share price --

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