Asked by ZF to comment on the information at hand, Aviva Europe officials confirmed there was indeed a list of seven strategic markets, adding Romania, the Czech Republic and Hungary were not among them. They said it was too early to talk about a sale, though.
“Aviva seeks to consolidate position on international markets and will focus its efforts on those markets where it believes it can make at least $100 million profit, get a return on equity of at least 12% or where companies have the potential to reach $1 billion market value,” said Geraldine Kennedy, Aviva Europe’s head of communications strategy and planning.
Romania, the Czech Republic and Hungary are not strategic
markets for the Aviva group because of their relatively small size.
On top of that, the Romanian subsidiary has been posting losses
year after year.
Aviva has been operating in Romania since 2000 and its local
subsidiary has been posting losses ever since. The insurer had a 13
million lei (EUR3.11 million) loss in 2009, according to the latest
data available, but the chief executive of Aviva Romania, Mihai
Popescu, said last December that the company was in the red in
2010, too.
Aviva Europe officials say it is business as usual in Romania and despite it no longer being a strategic market for the group, the local management team continues to get support from London.
“Talk of any decision or action regarding these markets (Romania, the Czech Republic, Hungary) is premature,” Geraldine Kennedy added. (EUR1=RON4.2022)