Aviva boss Amanda Blanc on lookout for extra takeovers

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

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

It comes after Aviva clinched an initial deal to snap up troubled Direct Line for £3.6 billion after sweetening a £3.3 billion offer that had been rejected. 

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

Expansion plans: Aviva boss Amanda Blanc

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

The offer comes weeks after Direct Line’s boss Adam Winslow, who took over at the start of March, announced the business was cutting 550 jobs as part of a £100 million cost-saving programme to revive its fortunes. 

Blanc’s attempt to snap up Direct Line pits her against her ex-colleague. The two are said to have ‘bad blood’ after Winslow left Aviva for Direct Line. If the takeover goes ahead he is expected to leave when the deal is completed. A City source said: ‘There’s no way he’s staying on.’

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

In March this year, Blanc faced speculation that Aviva itself could be a takeover target, but she responded with a share buyback and a dividend rise, cheering investors. The stock has also risen by 10 per cent this year.