Aviva to merge Irish and UK operations

Aviva is to scrap its separate company in the Republic of Ireland and merge its operation with the UK, cutting up to 950 jobs over two years.

In addition to the new UK and Ireland region Aviva plans to restructure its European regional operations to create a leaner cost base.

The 950 roles in Ireland will be lost over two years, subject to consultation

Aviva said it was committed to Ireland, as one of 12 priority markets, and claimed the changes would help it provide cheaper insurance there. But it blamed the "challenging macroeconomic environment" and said it needed to cut its Irish cost base to "a market leading level".

Aviva said it would retain a presence in Dublin, Cork and Galway. No changes would be made before March 2012 and full implementation would take up to two years.