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Aviva looks to kick-start growth as insurance veteran wins CEO race

THE UK’s biggest insurer Aviva named veteran insider Maurice Tulloch as its next chief executive on Monday, tasked with “re-energising” sluggish growth at the company.

The FTSE 100 giant’s board, which ousted former chief Mark Wilson in October, finally approved Tulloch’s appointment last night.

It picked him ahead of the other front-runner Andy Briggs, who heads Aviva’s UK insurance business.

Tulloch, who travelled to address 2000 staff in Sheffield today, has been at Aviva for 26 years and has worked in almost every division. Most recently he was based in Canada as head of Aviva’s international business, which includes its Canadian and European markets.

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The father of two will earn slightly less than Wilson with a maximum pay and benefits package of £6.2 million a year.

Chairman Sir Adrian Montague said Tulloch was the right man to “re-energise Aviva and deliver long-term growth”.

Aviva’s share price has flatlined over the past few years and a string of mis-steps under Wilson, including controversial plans to cancel special preference shares, which were dropped, also battered the stock.

Meet the CEO

Canada may currently be home for Maurice Tulloch but his roots are in Scotland. The new Aviva chief was born north of the border in 1969 before his parents emigrated to the land of the maple leaf in 1973.

The keen golfer, who has two children in high school in Canada, will move to London over the next few weeks having previously lived here when he ran the UK general insurance division in 2012.

While Mark Wilson’s favourite pastime was rugby, Tulloch’s sport is ice hockey. He supports the Toronto Maple Leafs. But he’s no glory hunter — the team hasn’t won top trophy the Stanley Cup since 1967.

Fears have also been expressed over a generous dividend policy and whether the payout should be cut to fuel more investment.

Tulloch is expected to lay out more strategy details at the annual results on Thursday. “There is a clear opportunity to realise Aviva’s significant but untapped potential,” he said today.

“Aviva is financially strong, we have a well-known brand and excellent businesses. But there is more to do to improve returns for shareholders.”

Tulloch’s international background and general insurance experience could shift Aviva’s focus away from low-growth UK life towards bigger-ticket property and casualty insurance overseas, said UBS analyst Jonny Urwin.

Barrie Cornes, Panmure Gordon’s seasoned insurance analyst, added Tulloch was a “good choice” and will help improve sentiment around the business.

Aviva was hoping to appoint a new chief executive by February but the process dragged on due to a longer-than-expected recruitment process rather than a regulatory delay.

The appointment also signals uncertainty for the long-term future of Briggs, who narrowly missed out on the role. He is expected to remain to help Tulloch in the near term.