Aviva integrates its 12 operations in Europe

The move will see several existing European subsidiary businesses converted to branch status — where it is appropriate to do so — subject to regulatory approval.

As part of the transformation, Aviva aims to establish a single holding company for its European operations in Ireland.

The insurer claimed the move will boost its pan-European distribution. But Vanessa Rhodes, senior group media relations manager, was unable to rule out job losses as a result of the restructure, adding: "We already have a strong foothold in Europe and think that it offers significant growth potential in terms of the demographic and personal financial profile of the region.

"We think we can exploit these opportunities by reorganising the way we work across Europe and a key part of that is integrating our 12 separate businesses and having a pan-European distribution model. Aviva is also simplifying its product range so that we are able to get our offerings quicker to market for the benefit of customers."

In the first half of this year, Aviva's European business, including Delta Lloyd, contributed to 50% of its long-term savings sales and 44% of its IFRS operating profits.

Edwin van der Ouderaa, managing director of UK insurance at Accenture, told Post that Aviva's proposal is representative of what it found in a study of international expansion plans of the global insurance industry conducted earlier this year. "The economic crisis has only exacerbated this and they are all driving towards more international expansion."

He added: "Companies will consolidate in logical places where there are beneficial synergies. As to where they choose to consolidate, that will depend on their historic roots.

"Ireland is an attractive place and that has always been a contributor to its success."

The insurer's strategy also includes an initial public offering of its Dutch business Delta Lloyd on Euronext Amsterdam. Aviva said this would allow it to enhance the value and liquidity of its retained majority stake in Delta Lloyd.

The Aviva European business will be consolidated under the auspices of European CEO, Andrea Moneta.