Aviva defends RSA bid rejection - graduate jobs

Graduates searching for jobs in the insurance sector will be interested to learn that Aviva has ruled out a break-up of the business, rejecting a £5 billion offer for its general insurance arm.

The group revealed its board had unanimously rejected last month's bid from More Than owner RSA, which planned to buy Aviva's home and motor insurance operations in the UK, Ireland and Canada.

The group said there were compelling financial and strategic advantages in continuing to run the general insurance business at the same time as its pensions and investments division.

It said this view was backed by a recent strategic review, which was carried out in conjunction with external advisers.

The statement follows criticism from shareholders that Aviva rejected the RSA proposal without consulting them or notifying the market of the interest. Aviva shares rose by 5% on Friday after RSA's move was reported in the media.

While Aviva is the UK's leading general insurer with an estimated 15% market share, around 70% of its world-wide profits come from life and pensions.

The two businesses operate in different cycles, with the steady cashflows of the general insurance arm seen as helping the whole business.