Finance sector company Aviva is to sponsor the National Theatre Live.

Aviva is a major player in the finance sector and sponsors events both in the field of arts and sports. To further their profile in these areas, Aviva has created a new partnership with the National Theatre. Aviva are now sponsors of the National Theatre Live, taking place in cinemas both in the UK and worldwide.

This is the second season of the National Theatre Live, and was proved incredibly popular in its first. 180,000 people saw films screened on 320 screens in 22 different countries; all broadcast live from theatres and screened in participating cinemas and arts venues.

The National Theatre’s idea to bring theatre to a wider audience is an extremely popular one, and Aviva were keen to sponsor the event in an effort to make sure the second season is just as popular, if not more so, than the last.

"We’re delighted to be supporting National Theatre Live, bringing the best of British theatre productions to international audiences in the comfort and convenience of their local cinemas. As the world’s sixth largest insurance group, Aviva is well-placed to share the National Theatre’s ambition to grow this innovative programme in scale and stature. We look forward to seeing audiences increase over the coming season and enjoying the ‘National Theatre experience’ on the big screen,” says Sally Shire, global brand development director at Aviva plc.

Particular plays are nominated, so that the arrangements can be made to have the cameras at a set time. The broadcasts film the chosen play at the theatre in high definition. It is then broadcast via satellite to the cinemas: in Europe this is live, as well as in a number of US cities, but in other countries it is time-delayed to allow for maximum audience attendance.

The venues can be found in the UK, USA and all across Europe, as well as more far-flung places such as South Africa and Australia.

“We are hugely grateful to Aviva for their support. We could not have initiated the experimental pilot season of National Theatre Live without Arts Council investment; its success has now enabled us to attract a generous corporate sponsor. I very much look forward to a long and exciting international collaboration,” said Nicholas Hytner, director of the National Theatre.

With the sponsorship of the financial sector company, this arts-based idea can continue and encourage other, similar projects worldwide; evidence that different sectors can easily come together in partnership to help one another.

Guest Article by Neil Camp 

The term savings fixed rate will be uncomfortable for many of the over-55s if a new report from Aviva is to be believed.

The report concludes that around 25% of over-55s are having to take the unwanted step of dipping into their income-generating savings in order to pay for life’s unexpected expenses. And for those whose financial plans embody the savings fixed rate schemes, there could be a tightening of the purse strings in the future.

The report revealed that the majority of over-55s (92%) have faced unexpected expenses in the last five years. What’s more, for this age group, the biggest financial fear is the rise in the cost of living. Some 64% cited this as the thing that keeps them awake at night. And given that this worry has gone from 18% of those asked in May 2010, to 64% in the latest survey, then this demonstrates the sense of panic and bewilderment caused both by the effects of the recession and the Government’s plans regarding the austerity measures.

And when it comes to financing those unexpected expenses, most of the over-55s dip into their emergency savings funds to foot the bill. A quarter use income-generated savings to fund the payout; some 17% cut back in other areas to make savings; just over 10% organised a loan, or paid by credit card; and, 6% sold assets.

Aviva’s Clive Bolton, a director of the company focussing on retirement, said about the findings of their report:
“Over the last thirty years, people have generally seen retirement as an opportunity to relax after a long working life and enjoy the fruits of their labour.

“However, when you consider that for a savings pot of £16,296, you would get an annual gross income of just £117 from the standard branch based notice account, you can understand why many over 55s are very worried about their finances. In fact these figures reveal that one in five over 55 households is struggling to get by on almost a third of the national average income.”

She went on to explain that:

“Retirement income is also relatively fixed which is why any rise in the cost of living is particularly concerning for this age group. This coupled with the fact that people often have to pay for unexpected expenses for which they have made no provision highlights how vitally important it is to build up retirement savings over your entire life.

“The Aviva research shows that as longevity increases individuals will spend longer in retirement. As such we want to help them plan their retirement finances so that they can enjoy the best possible lifestyle in their later years. At Aviva we offer a range of saving and investment solutions, as well as access to financial planning tools, to help individuals save for both planned and unplanned future expenses.”

In short, a worry for anyone with savings fixed rate plans.

Guest Article by Neil Camp

RSA, the world’s leading insurance company which currently has an audacious £5 billion cash bid out for part of the Aviva Group, has launched a new car insurance product.

The package is called RSA echoice Car Insurance and it has been launched for online users only. RSA are promoting it as a new pick and mix product which will allow online users to get flexibility and control with their policy, tailoring their agreement to meet their exact needs.

RSA customers will have the ability to build their own policy, starting from a basic level and then picking combinations from around ten cover options which might include vehicle breakdown, legal assistance, emergency assistance and legal care. What’s more, that options can be added throughout the life of the policy.

Head of car insurance at RSA, Keith Maxwell, said:
“RSA echoice is all about empowering the customer to take complete control of their insurance. Our customers want to be able to pick and mix their covers, rather than buying an ‘off-the-shelf’ package as traditionally provided by insurers. RSA echoice not only enables them to do this but also helps ensure that customers will only ever pay for the cover they want and need.”

The concept behind the RSA car insurance scheme echoice is to give power to the consumer. They will be able to self-administer their own policy, without having to telephone call centres to organise the various options. And a consumer can make the changes they require on a 24-hour basis, via their own computer.

The ability of the consumer to self-administer their policy, means that central costs to RSA can be kept down and therefore people’s premiums can also be kept low.

The new car insurance scheme will be available at the RSA website, as well as leading comparison websites.

Guest Article by Neil Camp

Aviva’s cheap life insurance business is not so attractive to RSA.

RSA is on the hunt for Aviva’s non life insurance business, but it’s no deal as the Board of the Norwich Union (as it was formerly known) say think again.

The RSA bid for Aviva’s non life insurance business is worth around £5 billion cash, but directors of Aviva have given the offer the cold shoulder, saying that the business is worth far more. RSA is not after the cheap life insurance business.

RSA is after Aviva’s general insurance business which has operations in Canada, Ireland and the UK. But the bid does not include the breakdown motoring organisation the RAC, or Health.

The small print of the RSA deal included a provision which meant that Aviva would have been left with the pension liabilities of not only the Health business, but also the general insurance businesses of the operations in France, Italy, Netherlands, Poland, Singapore and Turkey.

The offer from RSA did little to impress Aviva, although the City of London is now awash with thoughts that it’s about time the super insurance group was broken up to maximise shareholder value.

Aviva doesn’t agree and was vociferous in its defence, pointing that the highest shareholder value would be kept by keeping the businesses targeted by RSA within the same group.

The Aviva Board backed up their view with a number of assertions as to the strength of the current business.

Not least that a recent review had revealed that having both Life and Non-Life businesses is the best way to deliver significant capital and earnings benefits. Also, that there are further cost saving synergies to be realised over the short to medium term.

But, as always, it comes down to filthy lucre and RSA, as always with such bids, is bidding low to entice investors and will only reveal its true bid as matters develop.

Aviva is basically saying that RSA is not digging deep enough into its pocket for a business that not only has a dominate market position, but one that also has superb future potential.

To this end, Aviva is reminding RSA, and the City at large, that it is not only the leading general insurance business in the UK and Ireland, but it is the number two player in Canada. Given that, it should be valued accordingly.

What’s more, Aviva contends that the insurance sector is at its lowest point for years and RSA is making a bid at the bottom of the cycle which does not reflect the businesses true earnings potential. They cite the example that in 2006 operating profits of £1.7 billion were lodged in 2006, whereas it had fallen back to £1 billion last year.

Aviva believe that to sell its general businesses now for £5 billion, would be a travesty.

The howls of protest were led by Lord Sharman, the Chairman of Aviva, who said:
“The Aviva Board considered RSA’s proposal carefully with a clear focus on maximising value for Aviva shareholders. Given the compelling strategic and financial benefits to Aviva shareholders of retaining the GI business, its upside potential and the terms offered by RSA, the Board was unanimous in rejecting this proposal.”

Andrew Moss, the Aviva chief executive, weighed in with:
“The progress we’re making in reshaping and transforming Aviva was evident in the 21% increase to £1.27 billion of operating profits at our interim results and we firmly believe this strategy will continue to deliver superior value for our shareholders.”

But whether the RSA gets their hands on the Aviva non life insurance business, leaving it with the cheap life insurance business, will not rest with the directors of the target company. It’s the big fund managers who control large chunks of Aviva stock that will ultimately decide who gets the prize. But RSA will have to pump up their bid a way before any sale might be agreed.

Guest Article by Neil Camp