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Insurance giant Aviva in turmoil as chief admits to boardroom affair
Jonathan Prynn, Consumer Business Editor22.10.09
One of Britain's biggest companies was in turmoil today after its chief executive admitted to a boardroom affair.
Andrew Moss, the £2.2 million a year head of insurance giant Aviva, confessed to a relationship with a senior colleague who worked in his office.
His boss, Aviva chairman Lord Sharman of Redlynch was today forced to issue a statement expressing “full confidence” in Mr Moss and insisting that he had broken no company rules.
Father of four Mr Moss is thought to have embarked on the affair with Deirdre Moffat, 45, in the summer shortly after she was seconded to his office from her previous role as head of HR at Aviva Investors.
Mr Moss is believed to have made the approach to his chairman after the relationship became serious. After a three way meeting 10 days ago about how to handle the potentially compromising affair it was decided that she would resign.
The affair was today the talk of the City, where it was being described as “the Aviva triangle.” Aviva shares were today down 10p.
A company source said: ”All three decided that she had to go. It's invidious to go out with a person who is reporting to you. Her view is that it would have been complicated and she accepted that. Andrew wasn't going to resign. If he had offered it to the chairman it would not have been accepted.”
Mr Moss and Ms Moffat, who now goes by the name of Deirdre Galvin, have both left their partners and are living together.
Mr Moss recently moved out of the family home near Tunbridge Wells, which he shared with Susan, his wife of 25 years. He also owns a flat in Wapping.
In a statement Lord Sharman said: ”Andrew has been very open with me and I am clear that there has been no breach of company rules. I am completely satisfied that this has in no way impacted his role as chief executive and he retains my full confidence.”
Ms Moffat's departure terms were handled independently by another director Scott Wheway, who is head of the board's remuneration committee. It is believed that she received compensation equivalent to her notice period plus a sum related to her years of service.
Mr Moss, who is highly regarded in the City, is best known for transforming the global image of the £12 billion insurer by dropping the long established Norwich Union brand, employing a Hollywood style high profile TV advertising campaign to publicise the change.
He took charge in 2006 having previously been finance director of the Lloyd's of London insurance market.
Aviva, which also owns the RAC, is Britain's largest provider of household insurance cover. It has a policy expressly forbidding relationships with fellow workers who report directly to each other.
Reader views (13)
These things happen, but what I find more distasteful than anything is the fact that she received a pay off which he will benefit from as they are living together!!!
- Dereck, London, England
So Andrew Moss the head of Britains biggest insurer caught with his pants down, he obviously wasnt covered!!
- Mr S.Port, London
Moss clearly demonstrated that he could not be trusted to deal with colleages correctly.
So it's quite reasonable to ask, 'can he be trusted to do his work correctly / effectively ?
I personally would not now trust him an inch.
He has proved how deceitful he can be. What else might he be up to ?
He should do the decent thing. Immediately !
- Mr Integrity, UK
What a farce. Their personal life is nobody's business.
- Susmita Chatto, London
Come on people - this isn't some checkout girl having a snog with a bloke from the warehouse. This guy runs one of Britain's biggest financial services firms in the UK. He expects total honesty from millions of customers in their insurance declarations and subsequent claims. Aviva would be ruthless if anyone was caught cheating their insurance.
He has to be seen to behave equally responsibly and ethically, to have any credibility as an insurer.
While she didn't apparently break company rules, it doesn't look right. You have to question his professional judgement at even getting involved with a subordinate in the first place.
- Jacko, London
It is nothing unusual to have an affair with a collegue. This is 2009 after all. No big deal
- Christopher, london
What a little creep. I would never have behaved like that.
- John Riddick, London
If he was having an affair with a man, would the man be forced to resign?
And if Moss broke no company rules; why should the woman resign, unless its against the rules for women to have an affair with a company man?
Affairs happen; so what?
Get back to work you lot, or have a love-in, with pay.
- Mickinlondon, london
I don't think his having an affair has any relevance whatever.
There we should take a leaf out of our European neighbours' book.
- Nick, London
Watch out, Aviva, the human rights brigade will be after you. What people do outside work is their own business.
In any case, many small businesses and pop groups revolve around close relationships. What counts is the fairness and competence of the individuals concerned.
Closeness doesn't guarantee unfairness, nor does a bit of distance guarantee fair treatment.
- Jools, London
And it's the woman who has to resign why?
- Buggula, West Mids
EDITED by admin @ 16.22 on October 22 2009
- John Ware, London, England
I can't believe this 'news' has caused the share price to drop (!) and I can't understand how the personal lives of Aviva employees should be cause for concern as to how the company is run or even get reported on. They are both professional adults and therefore should not allow their personal feelings to affect their judge at work. If all relationships started in the workplace resulted in headlines there would nothing else to read about.
- Alison, London
