The withdrawal from the UK offshore market, which also includes the other two crown dependences of Jersey and Guernsey, does not affect existing customers.
UK insurer Aviva completed a £5.6bn ($8.5bn, €7.6bn) acquisition of Friends Life, including FPI, in April this year, creating a new global giant with 34 million customers and significant operations in the wealth management centres of Singapore, Hong Kong and Dubai.
Adrian Emery, newly-appointed chief executive of FPI, said that after a review of its operations, the company had decided to primarily focus its attention on new business from residents in its branch locations including UAE, Hong Kong and Singapore.
“I believe FPI is a strong business with potential to grow significantly across Asia and the Middle East, particularly in the high net worth and expatriate markets,” Emery said in a statement.
“FPI will remain a standalone business with its own brand and target customers, but will integrate areas of the business with Aviva Asia where it will be beneficial so we can maximise their combined potential and accelerate FPI’s growth.”
Emery only recently took over the reins at FPI after the previous chief executive, Khor Hock Seng, left the group suddenly to join Singapore’s Great Eastern.
Emery joined Aviva in January this year as director of business development for Global Life, where he was responsible for the company’s distribution to advisers, particularly in the Asian markets. He has also helped steer the integration of FPI into Aviva Asia.
Commercial factors
FPI said commercial considerations were behind the the move to stop taking new business in the UK offshore market.
“The Isle of Man will remain central to the business. However, as FPI moves to a more decentralised model FPI will reduce its presence in the Isle of Man, with a focus on retaining management, governance and critical regulatory and servicing functions there,” Emery said.
The job losses at the FPI headquarters in the Isle of Man form part of the 1,500 job cuts announced by Aviva in January this year following news of the Friends Provident acquisition. The cuts will happen between now and the end of 2016 and those affected will be offered other opportunities in the wider Aviva Group where possible.
