Piling on the pounds: Aviva-Friends Life reflects appetite for scale
The announcement from Aviva that it has entered an agreement to buy Friends Life has surprised many in the industry, but the move fits a wider trend among UK firms to build scale, finds Callum Tanner
Nobody seemed quite sure of what to make of the announcement by Aviva on Friday, November 21 that it had entered a preliminary deal to buy Friends Life for £5.6 billion ($8.7 billion). The reaction of investors on the following Monday morning when markets reopened was mixed, with many analysts saying the benefit to Aviva was not immediately obvious. The UK insurer's share price fell 5.8% on the day.
Yet Aviva's actions give several clues as to the direction of the UK's insurance market. The
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