Part of the union - Aviva's CFO Patrick Regan

The UK’s biggest insurer Aviva has appointed Patrick Regan as CFO, taking over from Philip Scott. Scott has spent 36 years at the firm, taking a big role in the flotation of what was then Norwich Union in 1997.

What’s happened?
It’s more a question of what hasn’t happened for the insurance giant in recent weeks and months, and Regan comes into the business at an exciting time. The former CFO and COO of insurance broker Willis, Regan will be busy on several fronts.
While some headlines in the past week have focused on chief executive Andrew Moss’ private life, that should not distract from two major pieces of business undertaken by the insurer.

It has taken a secondary listing on the New York Stock Exchange ­ and restructured its European business. While some reports suggest analysts think it was unnecessary, announcement of the listing boosted Aviva’s shares and the strategy has broadly been welcomed.

Aviva took the listing to make it easier for US investors, particularly as a big proportion of shareholdings are from the US (currently around 20%).

While UK companies have shied away from US listings in recent years due to concerns over regulation (in particular Sarbox), Aviva have taken the leap. With an ongoing global finance programme underway, and meeting US internal controls regulation, this should focus Regan’s mind immediately.

“Aviva has completed preparations for listing… This enhances Aviva’s financial processes, controls and risk management frameworks, bringing it Sarbanes-Oxley compliance and broader risk management benefits for the group,” said Aviva in a statement to the markets.

The restructuring has seen the insurer base its European HQ in Ireland.
This might seem like a kick in the teeth to the UK, but its UK operations are effectively separate from its European business. It is, of course, something for the government to bear in mind ­ favourable tax jurisdictions can help attract major business.

European chief executive Andrea Moneta tried to play down that tax was a big reason for its choice of Ireland. “If we make more business in a country with a lower tax rate, we may have some tax benefits,” reported the Telegraph. “This is absolutely not the primary reason.”

What’s going to happen?
Regan’s focus for the group is summed up nicely by his new boss Moss. His track record of improving reporting and financial performance, and his global experience are key for the group going forward.

“He brings a global perspective and a disciplined and strategic approach. These are key qualities as we seek to realise Aviva’s full potential and establish ourselves as a global group,” said Moss.

Regan will need all his experience from Grant Thornton, GE Capital Bank, Axa, RSA and Willis, as his new shook-up employer drives forward.