Chief executive Mark Hodges surprises insurance world by quitting Aviva after two decades to run Towergate
Mark Hodges, Aviva's UK chief executive, is leaving the insurer after 20 years to take the helm at Towergate Insurance with a view to taking it public. His replacement by former Friends Provident boss Trevor Matthews has raised questions over Aviva's long-term leadership.
Hodges, who was seen as a potential successor to Aviva chief executive Andy Moss, jumped ship in a surprise move.
Moss said he was "very sorry" to see Hodges, 45, leave, but added he understood that "he wishes to take on a different challenge at this stage in his career".
Hodges, who said the opportunity to lead Towergate was "irresistible", is Aviva's second high-profile departure in as many weeks, with the head of its UK life arm leaving to join Scottish Widows.
Hodges will succeed Andy Homer, who is retiring as chief executive of Towergate, on 1 October and is on gardening leave until then.
Towergate, Europe's largest independent insurance intermediary, is backed by private equity firm Advent International, which bought a minority stake for £200m in January and is expected to float or sell the business in three or four years' time.
Towergate's main shareholder is its founder and deputy chairman Peter Cullum, the Norfolk-born billionaire.
Matthews, 59, resigned as vice-chairman of Friends Life, the UK life-insurance arm of industry consolidation vehicle Resolution, a job he started only on Wednesday after being replaced as chief executive of Friends by Andy Briggs. Matthews, whose start date at Aviva is yet to be determined, had planned to go back to his native Australia with his family.
He said: "That's very much on the back-burner now. We may go back one day ... This is a big job. There aren't many big jobs like this in the world." He added that his 10 and 11-year-old sons were very excited about Aviva's Premiership Rugby sponsorship.
Insurance analyst Barrie Cornes described the news as a "shock announcement". "Whilst such an announcement would be seen as a bolt out of the blue, it is even more so in that [Hodges] is being replaced by Trevor Matthews who recently resigned as CEO of Friends Provident stating his desire to return to Australia 'within the next three years'.
"The extent of today's announcement and the complicated nature of it will, we believe, give rise to some speculation about the group's long-term leadership."
Matthews added: "Aviva is a business that I have always admired and seen as a formidable competitor in my previous roles. Over the coming years I am confident that Aviva UK will continue to strengthen its position as the country's undisputed leader in insurance."