March 9 2014 Latest news:
John-Paul Ford Rojas
Friday, December 20, 2013
Aviva is to make £500m of funding available in the first tranche of the insurance industry’s commitment to invest £25bn in UK infrastructure over the next five years.
The group expects to allocate new money for debt financing of projects including transport, utilities, hospitals and schools.
It comes two weeks after the wider investment commitment announced together with firms including Legal & General, Prudential, Standard Life, Friends Life and Scottish Widows.
The £25bn pledge followed changes in European rules, backed by the UK, which incentivise investment in a wide range of assets.
Aviva already has £5bn invested in UK infrastructure including PFI loans for schools, universities and hospitals and investments in corporate bonds of utility, airport and railway companies.
Chief executive Mark Wilson said: “Aviva is contributing to the building blocks of the UK’s future, making an additional £500m available immediately to invest in the country’s schools, hospitals and transport.
“We’ll focus on investments which are good for our policyholders, good for society and good for the UK economy.”
Earlier this month, the government set out more than £375bn of planned public and private investments to 2030 and beyond in its new national infrastructure plan.
During the initial announcement of the infrastructure plan, Danny Alexander, chief secretary to the Treasury, said the move was a “massive vote of confidence” by some of the most important companies in the UK economy.
He said he hoped people would recognise it was evidence the government was making progress on delivering infrastructure for the country’s future.
Aviva announced in September that Maurice Tulloch had been appointed chief executive of its Norwich-based general insurance division for UK and Ireland – moving from Aviva Canada.