Aviva plc (“Aviva” or the “Company”) today announces Maurice Tulloch will become Chief Executive Officer with effect from 4th March 2019.
Sir Adrian Montague, Chairman of Aviva, who has been acting in an executive capacity pending the appointment of a CEO, will revert to his role as non-executive Chairman on 4th March 2019.
Maurice joined Aviva in 1992 and was appointed to the Board of Aviva plc in June 2017. Maurice is currently Aviva’s Chief Executive Officer, International Insurance and has responsibility for Aviva’s life insurance and general insurance operations in France, Canada, Ireland, Italy, Poland, Turkey and India. He was previously Chief Executive Officer of Aviva UK and Ireland General Insurance, one of the largest businesses in the Aviva group.
Details of Maurice's remuneration can be found at the end of this announcement.
Adrian Montague, Chairman of Aviva, said:
“Maurice will be an outstanding Chief Executive of Aviva. He knows the business inside out. He has led our businesses in the UK and internationally and built strong teams across life insurance and general insurance. Maurice knows our strengths, knows where we need to improve and has a deep understanding of insurance and customers’ needs. He is exceptionally well qualified to re-energise Aviva and deliver long-term growth.
“The Board has run a thorough and highly competitive process and we have interviewed external candidates alongside highly experienced and respected internal candidates. This process led to a unanimous conclusion and a great result for Aviva.”
Maurice Tulloch, Chief Executive Officer of Aviva, said:
I am honoured to lead Aviva, a business I’ve been part of for 26 years. There is a clear opportunity to realise Aviva’s significant but untapped potential. Aviva is financially strong, we have a well-known brand and excellent businesses. But there is more to do to improve returns for shareholders.
We must focus on the fundamentals of insurance and giving our customers the best possible experience - being there when they need us, protecting what’s important to them and helping them save for the future. With the care and professionalism of our dedicated people, I know Aviva will thrive.
This announcement contains inside information. The person responsible for making this announcement on behalf of the Group is Kirstine Cooper (Group Company Secretary).
Enquiries
Media
Nigel Prideaux
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Andrew Reid
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Diane Michelberger
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Compensation arrangements
Maurice Tulloch will receive a basic annual salary of £975,000 pro-rated for his length of service as CEO in 2019. He will be eligible to receive a pro-rated annual bonus opportunity for 2019, that will pay up to a maximum of 200% of salary for his time in role as CEO, and be required to defer two thirds of any award made into Aviva stock which will vest in three equal tranches over three years. Maurice will also be eligible to receive the grant of an award under Aviva’s Long-Term Incentive Plan for 2019 under which awards are made annually at the discretion of the Remuneration Committee. Long-Term Incentive Plan awards for the Group Chief Executive are typically 300% of basic salary with awards vesting after three years and only if specific financial and shareholder return targets are met. There is a further two year holding period for the awards after vesting. Long-Term Incentive Plan awards for 2019 will be reported on 26th March in line with our usual timetable.
Maurice currently owns 348,797 shares in Aviva plc and will be required to build a shareholding in Aviva to the value of 300% of his basic salary. He will be required to retain 50% of the net share releases from his deferred bonus and long-term incentive awards until this requirement is met.
Maurice will receive pension contributions of 14% of salary in line with the maximum employer contribution level available to all UK based employees. This follows the latest guidance from the Investment Association.
In addition, Maurice will receive the standard Aviva executive benefits package. This will include assistance with relocation from Canada to the UK of an amount up to £250,000 exclusive of tax, payable against receipted costs incurred within a period of 24 months from the date of appointment.
Maurice will be a UK resident and will pay UK income tax.
Sir Adrian Montague elected not to receive any increase in fees for the duration that he has been performing the duties of executive Chairman and his fee will remain unchanged when he reverts to the role of non-executive Chairman on 4th March.
Maurice Tulloch - Biographical information
Born March 1969 in Falkirk, Scotland.
Nationality: British and Canadian
Maurice joined Aviva in 1992 and is Chief Executive Officer International Insurance and Chairman of Global General Insurance. He has responsibility for Aviva’s life insurance and general insurance operations in France, Canada, Ireland, Italy, Poland, Turkey and India; and to strengthen and increase focus on our international businesses. As Chairman of Global General Insurance Maurice is also responsible for leading Aviva's general insurance businesses.
Maurice joined the Board of Aviva plc as an Executive Director on 20 June 2017.
Previously Maurice was Chief Executive Officer of Aviva UK and Ireland General Insurance, the largest of Aviva's general insurance businesses. Prior to that he was President and Chief Executive Officer of Aviva Canada, with responsibility for the strategic direction and operation of Canada's second largest property and casualty insurer. Prior to that he was Executive Vice-President and Chief Operating Officer, Aviva Ontario and specialty distribution and has held several senior management positions in Aviva.
Professional qualifications and memberships
Maurice is a Chartered Professional Accountant (CPA, CMA), and holds a MBA from Heriot-Watt University in Edinburgh and a BA in Economics from the University of Waterloo.
Maurice is currently a member of the Insurance Development Forum (IDF) and a Non-Executive Director of Pool Re. Maurice was also previously Chair of ClimateWise.
Career highlights
Maurice has developed new strategies for our life insurance and general insurance businesses in Italy, France and Ireland, diversifying distribution, reducing costs and optimising capital. This has led to a significant improvement in profitability: at Half Year 2018, operating profits in France increased 10%; in Italy operating profit increased 7% and in Ireland operating profit increased 11%.
Maurice led the turnaround of Aviva’s UK and Ireland General Insurance business, which led to a growth in premium and a number of major bancassurance wins. Maurice also led the industry campaign against whiplash and motor insurance fraud to reduce the costs of motoring for honest drivers.
Maurice led the acquisition of the RBC General Insurance Company, consolidating Aviva’s position as a leading general insurer in Canada. He also led the acquisition of Friends First in Ireland, which has led to Aviva becoming one of Ireland’s leading composite insurers.
Notes to editors
- In accordance with paragraph LR 9.6.13R of the listing rules, Aviva confirms there is no information to be disclosed in terms of LR 9.6.13R (2) to LR 9.6.13R (6) inclusive in respect of Maurice Tulloch.
- Maurice is a non-executive director of Pool Re.
- Maurice’s appointment has been approved by the PRA and FCA.
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
- In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
- Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £350 billion in assets. Total group assets under management at Aviva group are £490 billion.
- Aviva helps people save for the future and manage the risks of everyday life; in 2017 we paid out 98% of all our claims across all our markets and insurance products. We paid out £34.6 billion in benefits and claims in 2017.
- By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
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