PEST Analysis of Aviva PLC Essay Example | Topics and Well Written Essays - 2000 words

PEST Analysis of Aviva PLC - Essay Example Aviva Plc is the sixth largest insurance group in the entire world. It has a huge customer base of 44.5 million, and provides its clients with insurance products and various savings and investment schemes. The major part of the firm’s business comes from Europe where it is one of the pioneering life and general insurance companies. Aviva has developed an elaborate distribution network in the European market to serve over 18 million customers in the continent. The European Union is the world’s largest market for life insurance and pension products and Aviva Plc has harnessed this opportunity to gain a strong foothold over there. The company also happens to be the largest insurance provider in the United Kingdom (Aviva, 2011). Aviva specializes in providing life insurance, general insurance and various pension schemes to its customers. In Europe, it is a leading provider of various life insurance, general insurance and health insurance products. In recent years, the compa ny has rationalized its product offerings in this market and is attempting to merge all its business in the continent under a single head. In 2010, Aviva has identified significant opportunities in the European pension market. The 27 European Union countries including Russian and Turkey had an annual gap between pension and savings of about â‚ ¬ 2.4 trillion. ... Customers can purchase these products either directly from Aviva, from any of its corporate partners or from any of its intermediary firms. In 2010, Aviva’s life insurance and general insurance business reported a strong performance in the UK market. The sales of its life insurance products increased by 19 per cent from the previous year to ?11,846 million. This resulted in a record level of operating profits of about ? 850 million, which was 26 per cent higher than the corresponding 2009 figures. In the general insurance business, Aviva UK witnessed an increase in its sales during each succeeding quarter of 2010. The profits in this sector reported an annual increase of 8 per cent to â‚ ¬ 579 million. Aviva UK, also merged many of its life insurance and general insurance schemes together to provide the customers with innovative products during the year 2010. (Business Summary, 2011) The main share of revenues of Aviva plc is derived from its life and general insurance busi ness and its asset management services. The European Union especially UK comprises the world’s largest markets for life insurance and pension services. Aviva has harnessed this opportunity to emerge as the largest insurance company in UK and the second largest provider in Europe. The company has devised its insurance schemes in such a way so as to simultaneously cater to the interests of the customers and the firm itself. In 2010, UK’s insurance intermediary organizations voted Aviva as the region’s leading provider of life, general and health insurance policies. The firm has also directed its efforts in expanding its main business activities in the North American countries – USA and Canada. The firm has tried to leverage the advantages of