Aviva returns to corporate risk

Aviva has already placed £5m of corporate risks gross written premium since returning to the multi-billion pound market with its September soft launch.

Phil Bayles, Aviva's director of trading, told PB that he wanted the insurer to become a top-three player within five years and that he was targeting premiums over £100,000.

Bayles said: "Corporate risk is part of our long-term strategy to grow in the areas where we feel we can make money."

Aviva has already been placing property owners' and large fleet risks but has now set up a dedicated team in its City office. Its remit is to place all risks including construction, liability and specialist for UK-based businesses with turnovers in excess of £100m, including those in the FTSE 350 and of equivalent size. Paul Sullivan will head up the division - to be called Aviva Corporate Risk Solutions - which is set to employ 50 staff by the end of 2010. The unit will compete with Allianz, RSA and Zurich to gain business from the likes of Marsh, Aon and Jardine Lloyd Thompson. Aon refused to comment on the move.

Aviva pulled out of the sector following the merger of CGU and Norwich Union in 2000 in order to concentrate on smaller risks and personal lines. Bayles said that there were no silver bullets such as price to win business in the market, although felt that the sector would welcome the return of such a large and well-capitalised player.

Aviva has had a tough year after a dramatic change of strategy implemented by outgoing chief executive officer Igal Mayer that will see the insurer lose around £1bn of premium in 2009. Meanwhile, David McMillan has been appointed chief executive officer at Aviva general insurance to work under UK CEO Mark Hodges.