Aviva boss Amanda Blanc eyeing more acquisitions

Aviva boss Amanda Blanc has more takeover targets in her sights after the insurer’s attack on rival Direct Line last week.

Blanc, 57, is studying potential areas of expansion in Aviva’s business, such as its health and protection division, according to a source close to the matter.

It comes after Aviva sealed an initial deal to take over troubled Direct Line for £3.6bn after sweetening a £3.3bn bid that had been rejected.

The acquisition, which offers Direct Line shareholders a mix of cash and shares, will give them a 12.5 per cent stake in Aviva.

It is the third bid for the insurer in less than 12 months, with Direct Line rejecting a takeover attempt by Belgian rival Ageas earlier this year.

The offer comes weeks after Direct Line boss Adam Winslow, who took over at the beginning of March, announced the company was cutting 550 jobs as part of a £100m cost-savings program to restart his fortune.

Blanc’s attempt to take over Direct Line pits her against her former colleague. The two are said to have “bad blood” after Winslow left Aviva for Direct Line. If the acquisition goes through, he is expected to leave when the deal is completed. A City source said: “There’s no way he’s staying.”

Since taking over as Aviva boss in 2020, Blanc has revived the insurer’s fortunes by spearheading a series of deals including the sale of several of its non-core overseas businesses.

In March this year, Blanc faced speculation that Aviva itself could be a takeover target, but responded with a share buyback and dividend increase, encouraging investors. The stock is also up 10 percent this year.