Aviva’s incoming CEO, Mark Wilson, – the former CEO of AIA Group – has admitted that over recent years Aviva has "not performed to its potential".
Wilson will join Aviva’s board on December 1 2012 and become CEO of the insurer from 1 January 2013.
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John McFarlane, Aviva’s current chairman who has been acting in an executive capacity pending the appointment of a CEO, will become non-executive chairman on January 1 2013.
Wilson’s appointment comes after Aviva announced in May 2012 that Andrew Moss, Aviva’s former CEO, was stepping down with immediate effect.
Describing his appointment as a "privilege", 46-year-old Wilson, who is a New Zealander, said McFarlane and the Aviva board have articulated the first stage of the strategy that addresses the immediate issues.
Wilson said: "I look forward to continue working closely with the board on these priorities. The company will initially be judged on the execution of that strategy and I intend to pursue the execution with rigour and focus."
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By GlobalDataWilson added: "My first task will be to listen to Aviva’s stakeholders, including customers, shareholders, staff and regulators and ascertain the key concerns and opportunities that face the business. There is substantial work to do. I am looking forward to taking up this appointment and excited about the future prospects for Aviva."
Wilson has over 25 years’ experience in the insurance industry across life and general insurance, as well as asset management in both mature and emerging markets.
During his tenure at AIA between 2006 and 2010, Mark repositioned AIA and improved its market valuation to $36 billion at IPO.
Since leaving AIA, he has been involved in private equity with Blackstone and other private equity firms.
Commenting on the appointment, McFarlane said Wilson described Wilson’s leadership credentials as "incredibly strong".
Mc Farlane said: "[Wilson] has operated in both developed and emerging markets. At AIA, Mark faced similar challenges to Aviva today. He navigated the company through the global financial crisis, narrowed the focus of the company, sold non-core businesses, turned round non-performing segments, and reduced risks and costs. From that foundation he implemented a successful revenue growth strategy."
McFarlane added that Wilson’s appointment follows a comprehensive global search process which produced a shortlist of exceptional internal and external candidates.
Prior to AIA, Mark was CEO of AXA China Region, AXA’s Hong Kong business, between 2003 and 2006 with a brief to invigorate a mature business with a flagging market position.
Aviva’s profit after tax was £60m in 2011 compared to £1.9bn in 2010. The provider’s return on equity was 12% in 2011in contrast to 14.8% in 2010. Aviva delivered a life insurance operating profit of £2.1bn in 2011, 7% higher than in 2010.
