Asset sale report as Aviva executive pay rises

Insurance giant Aviva is reportedly looking to offload Friends Provident International for £596 million.

The company announced earlier this month it had seen lower profits from the business, which serves high net worth clients in the Middle East and Asia, and was placing it under strategic review.

Chinese conglomerates Fosun Group and HNA Group are eyeing the division, though the formal bidding process has not yet started according to reports.

A disposal would come just years after the UK insurance firm acquired FPI as part of its £5.6 billion takeover of Friends Life Group in April 2015. Aviva declined to comment. The move came as it was revealed that Aviva chief executive Mark Wilson picked up a £4.4m total pay package for last year, including a 2% increase in his annual salary to just over £1m.

Aviva’s annual report added that senior executives, including Mr Wilson, will see their salaries rise by another 2.5% on April 1.

But overall pay for the Aviva chief dropped 20% in 2016 from £5.4m a year earlier, due in part to a fall in the long-term incentive plan pay-out which is partially linked to targets for total shareholder returns.

Aviva earlier this month pledged to hand more cash to shareholders after announcing a 12% rise in operating profits to £3.01bn for 2016.

Aviva CEO Mark Wilson.