It’s an iron law of business that whenever a chairman talks publicly of his complete confidence in his chief executive, he hasn’t got it. Andrew Moss must be hoping that Aviva, the UK’s biggest insurance group, is the exception that tests the rule.
Aviva Investors is the latest asset manager to consider a fund to take advantage of real estate downturn, according to recent reports. By coincidence, the UK insurer is already very familiar with some of the property that may come to market as a result of the credit crunch.
Banks and insurers are looking for ways to bolster their capital, while having the flexibility to strike if there are acquisitions to be had on the cheap. To achieve these twin goals, Spain’s Santander and now British insurer Aviva intend to float minority stakes in subsidiaries.