Norwich Union owner Aviva is to shed 1,800 jobs over the next two years as it seeks to rationalise its insurance operations. This will will lead to ‘centres of excellence’ in seven cities across the UK, whilst other locations will no longer carry out insurance business, although Aviva will continue to have a business presence in these locations. Major cities such as Birmingham, Glasgow, Leeds and Liverpool will be affected. (more…)

Scottish Widows has been accused of giving negligent advice that has resulted in total losses of around £300m for 100 pension schemes. A dossier of evidence has been sent to the Financial Services Authority (FSA) for them to review by an organisation called the Actuarial Review Company (Arc). (more…)

Insurer Friends Provident has put up its wealth management business, Lombard, up for sale. There are a mix of insurers and private equity firms thought to be interested in the business, with French insurer La Mondiale, thought to be the front runner.

The sale, represents the latest in a line of attempts to takeover all or part of Friends Provident. JC Flowers, the prive equity firm, is still interested in Friends as a whole. Friends’ 53% stake in Foreign & Colonial asset management is still up for sale but isn’t shifting and now Towergate is thought to be interested in Pantheon, its intermediary business.

US private equity group JC Flowers looks set to launch another approach for the UK life assurer, Friends Provident.  Shares in Friends have witnessed a sell off in recent months and following the release of a strategic review and subsequent further 10% fall on Thursday, shares ended the week at 136p.

The JC Flowers bid could value the company at 175p per share, a significant premium on the current price but below the 200p per share marker seen before the sell off.