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Now Aviva USA turns to staffing, organization issues

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With the completion of Aviva plc’s acquisition of AmerUs Group Co., formal planning can now begin on how the two insurance companies will be integrated, according to Tom Godlasky, president and CEO of Aviva USA.

“We have functioned as two independent companies up until now,” said Godlasky, formerly the CEO of AmerUs. “Now that the deal is closed, we can get on the ground and begin planning in earnest.”

The deal was announced last July, but it took months to get over all of the technical and legal hurdles. “We have had some high-level discussions [about organizational issues], but we needed to clear Hart-Scott-Rodino,” Godlasky said. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 was enacted to give federal antitrust enforcement agencies a chance to review and investigate before the close of mergers and acquisitions that could decrease competition.

Godlasky said jobs will be added in Des Moines, but that it’s too early to say how many. Aviva’s only other U.S. presence is a Boston operation employing about 390 people. “We have a process set up so that once we identify the positions to be filled here, we will make sure those jobs are offered to people in the enterprise, specifically to Boston people,” Godlasky said. “We will fill the slots with the best people in the company.”

He said it’s likely that some workers will relocate to Des Moines by the end of 2007. “We might not be completely finished with the integration by then,” he said, “but it will be well under way.”

The former AmerUs becomes the fourth-largest insurance group in the Aviva network. Aviva itself ranks No. 28 on the Fortune 500 list of global companies.

Locally, the move adds to an already substantial list of insurance jobs. Asked if he expects any problems finding enough qualified workers, Godlasky said: “We have not experienced trouble in finding employees. I think Des Moines and Iowa as a whole have a strong, well-educated employee base. That’s reflective of our desire to grow, as well as other companies who recognize that employee base.”

As part of the deal, Aviva also acquired AmerUs operations in New York, Indianapolis and Topeka, Kan. “Those are also good, viable markets,” Godlasky said, “but clearly the focus will be on Des Moines. This is the headquarters; this is where we see growth taking place.”

Godlasky said Aviva CEO Richard Harvey has stated that the company bought AmerUs to serve as its sole American connection. “He’s been asked by analysts if there will be further acquisitions, and he said this is the platform for growth in the United States,” Godlasky said.

The $3.1 billion merger does more than simply create a larger insurance company. Godlasky said it adds products to the line offered by AmerUs. “For existing policyholders and those we hope to attract, there will be complementary products offered as a result of the combination of the two companies,” he said. “They [Aviva] have a presence in bank channels, a very good presence in the structured settlement market, and they’re growing in the 403(b) market — the teachers and public employees [retirement plan] market. Between our distribution capabilities and theirs, I think we will be able to offer a much broader portfolio.”

Godlasky said, “It’s rare that a company can be acquired and the policyholders win, employees win, shareholders win and the community wins.”

Policyholders “win” because of Aviva’s greater financial strength, he said. “Our debt rating is upgraded, and our expectation is that we will be a higher-rated company. That gives our policyholders better financial soundness and safety.

“One other significant benefit we see is the ability to latch on to a very powerful global brand. Aviva is not as well-known in the United States, but it will be. You will see the results of that shortly.”