In order to reduce costs, the UK's second largest insurer, Aviva will be cutting jobs in Canada.

The Company announced on Tuesday that in order to shrink costs worth £200m by 2012, it will be laying off a few hundreds of jobs in Canada.

Aviva also revealed that the Company's sales remained above the forecasted figure and it also made an expansion to its capital generation promise. It is also planning to sell off its small Taiwanese sister-concern.

The Company didn't provide complete information on the reduction of jobs in UK, but it said that there will be no impact of cost-cutting on fresh jobs. It would also halt its final salary pension scheme that would save it £50m.

"The cuts would cause the group's operating cost base to dip below £5bn. The insurance group recently concluded a restructuring that saved £500m a year ahead of schedule", said Andrew Moss, Chief Executive.

As told by Aviva, its total worldwide sales in the first nine months of 2010 increased 5% to £35.93bn, as compared to the last years' figure of same period. The sales of life and pensions schemes climbed 6% to £25.55bn, beating analysts' expectation of £25.24bn.

The Company is hopeful to make £1.5bn of operational capital by the end of this year and the same figures are expected in the upcoming year also.