Miles Costello
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Aviva, Britain’s largest insurer, has risked uproar by announcing plans to ditch the Norwich Union brand name. Andrew Moss, Aviva’s chief executive, signed the death warrant for Norwich Union — founded in 1797 to provide fire cover for residents of the city in Norfolk — as part of a global drive to unify the group under a single brand.
“It is clear we need one name our customers will recognise wherever they are in the world,” he said. “The migration to the Aviva name will take place over the next two years in the UK, Poland and Ireland.”
Mr Moss, who took over as chief executive in July, refused to say how much the rebranding would cost. Norwich Union has 22 million customers in the UK and provides household, life and RAC-branded motor cover. Writing to all its customers to inform them of the change would cost more than £6 million in first-class stamps alone.
Mr Moss, who is also rebranding Hibernian in Ireland and Commercial Union in Poland, dismissed suggestions that customers would abandon a brand that they no longer related to. “We are spending to promote four brands. In two years, we’ll be spending to promote only one,” he said.
Abandoning the Norwich Union brand could be controversial. Even insiders said that Mr Moss was taking a gamble. In 1808, 11 years after it was formed, Norwich Union established itself as a life insurer. In 1997, it demutualised and floated on the London Stock Exchange. In 2000, it merged with CGU in one of several complex moves and in 2002 the group was renamed Aviva, paying £1 million to a brand consultant to find the name, which has no specific meaning but attempts to suggest life and vivacity.
Aviva said that it remained commited to Norwich, where it is the largest private sector employer, with 6,700 staff. At the same time Aviva struck a three-year shirt sponsorship deal with Norwich City Football Club, replacing the airline Flybe on the Canaries’ yellow and green strip.
Aviva shares fell 14p to close at 620p yesterday.
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