'Why oh why would Aviva want to take over Friends?' Industry reacts to deal talk

‘Why oh why would Aviva want to takeover Friends?' Industry reacts to deal talk

Laura Miller
clock

The industry has reacted with confusion and concern to Aviva's intention to takeover smaller rival Friends Life, with fears a merged insurer will mean worse customer service and less competition.

Clive Cowdery, major shareholder in Friends Life, is undoubtedly very happy about Aviva's plans to buy the insurer, which, if it succeeds, would net him £160m from the £5.6bn takeover deal announced on Friday. Advisers, however, whose clients' money and affiliation are essentially what Aviva is willing to pay a 15% premium to Friends Life's closing price on 21 November for - and a 28% premium to its three-month average share price - are less convinced. "Why oh why would Aviva want to take over Friends when the prevailing wind in the industry is blowing away from acquiring legacy asse...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advice firms report that around four in ten clients are vulnerable - MorganAsh

Advice firms report that around four in ten clients are vulnerable - MorganAsh

Data from the MorganAsh Resilience System

Jaskeet Briah
clock 28 May 2026 • 2 min read
Student loans present 'almost impossible' financial planning question

Student loans present 'almost impossible' financial planning question

To be a 'burden' for years to come, advisers say

Sophia Panayi
clock 28 May 2026 • 5 min read
Advice consolidation: Reputation, regulation and a transforming market

Advice consolidation: Reputation, regulation and a transforming market

Growth alone is no longer enough

Isabel Baxter
clock 27 May 2026 • 5 min read