Why Aviva Wants to Buy Friends Life

The video discusses significant changes in the UK pension industry, particularly the shift away from mandatory annuities, and how companies like Aviva and Friends Life are adapting. Aviva is focusing on asset management and considering a merger with Friends Life to create a larger entity. Friends Life, facing challenges due to the decline in annuities, is exploring corporate bulk annuities as a new strategy. The merger would create a powerful entity serving a large portion of the UK population.

What was the significant change in pension policy announced by George Osborne?

• Increased pension contributions

• Higher taxes on pension withdrawals

• Mandatory annuities for all retirees

• Flexibility in using pension savings

How did Aviva plan to offset the decline in annuities?

• By reducing employee benefits

• By enhancing their asset management unit

• By increasing annuity rates

• By cutting down on customer services

What would be the result of the merger between Aviva and Friends Life?

• A decrease in customer base

• A decline in stock prices

• A 21 billion pound powerhouse

• A reduction in market share

What challenge did Friends Life face due to the pension policy changes?

• Rise in operational costs

• Surge in customer complaints

• Drop in the value of new business

• Increase in annuity sales

What new business area is Friends Life exploring to counteract the decline in annuities?

• International expansion

• Real estate investments

• Corporate bulk annuities

• Individual annuities