Richard Bruton (Dublin North Central, Fine Gael)

Aviva is undertaking a review of its operations in response to a significant reduction in demand for insurance and pensions products. Aviva has found it necessary to review its Irish operations to ensure its cost base is in line with domestic demand to ensure sustainability.

Industry figures show that motor and home insurance has dropped by over 20% in the past two years. Also, life assurance and pensions have dropped by over 30% due to concerns over long-term savings, people cancelling or reducing pension policies. This has impacted greatly on Aviva's operations in Ireland. The fall in the Irish market has led to the present restructuring review which the company's European management is leading.

Aviva has been undertaking major restructuring across of all of its markets. In recent years, Aviva staff numbers in the UK have dropped from 33,000 to 20,000 and the company's total workforce has dropped from 56,000 to 36,000.

I have met with Aviva's chief executive officer for its worldwide operations, its European director as well as the chief executive officer of Aviva Ireland. The meeting was part of an ongoing process of contact between senior Aviva management and myself. I expressed the Government's concern about the impact on employment and urged the company to seek solutions that minimised the impact on jobs. I also offered it the support of my Department's agencies.

The company briefed me on the ongoing review of the Irish business and the challenges and opportunities that present themselves in the light of market conditions here and organisational changes across Aviva Europe. The company confirmed Aviva remains committed to the Irish market and would seek to minimise the impact on jobs as a result of the review. It also reiterated that no final decisions had yet been arrived at.

IDA Ireland is in contact with the company at both corporate and local level with the intention of mitigating the impact of any potential negative outcomes following the review. IDA Ireland is also in dialogue with the company concerning potential future opportunities around the company's significant international business.

I will continue to keep in close contact with the company as this review progresses.

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