Aviva PLC shares tumbled last week after the company announced a net loss of £3 billion for 2012 and a chopped second-half dividend.
Accompanying the loss, the second largest U.K. insurer by market share said they were going to cut directors bonuses to zero and freeze pay for 400 top managers.
The after tax loss, which was anticipated by executives and analysts alike due to previously announced writedowns pertaining to the sale of its U.S. business to Athene Holding Ltd. in December for $1.8 billion, is part of Aviva’s decision to refocus on its core competencies and exit 16 non-core segments.
In what Aviva called “a year of transition,” the designed turnaround plan put in action last year continued as intended with the company disposing of units in Malaysia, the Netherlands, Sri Lanka, Russia as well as the U.S. CEO Mark Wilson, who replaced Andrew Moss after shareholder questions over executive compensation, believes in selling assets not only as part of Aviva’s leaner overall strategy but also to kick-up capital after the company was hit hard by the European sovereign debt crisis. Aviva stated that a goal for 2013 will be to reduce its exposure to southern European countries, a sign that the company sees Europe’s ailing economy not getting better anytime soon.