Yesterday, plans to raise about €1.5 billion (£1.3 billion) were forwarded by the chief executive of Aviva, by floating Delta Lloyd, its Dutch subsidiary, and using the proceeds for expansion.

It was specified by Andrew Moss, who has spent the past two years taking costs out of Britain's largest insurer, that there were bargains in the industry and that he would buy at the right price.

"There are some companies in the UK market that are strategically challenged. We have a terrific track record of putting companies together. We will only do it if it generates value but we do see opportunities in the next 12 months," he said.

It was informed by Mr. Moss that smaller British rivals in the life and general insurance sectors were included in the acquisition targets.

Aviva will make an effort take market share from underperforming rivals in the UK and continental Europe, apart from pursuing takeover opportunities.

"It has 12 per cent of Britain's general insurance market, a 1 per cent increase on this time last year," said Mr. Moss.

The interim dividend has been cut by him by almost a third to 9p, which will save the insurer about £100 million.

Mr. Moss concluded: "Aviva would also consider buying back some of its £5.8 billion debt to help protect its AA-minus credit rating."

(Via TopNews United Kingdom. Contributed by Shivdeep Singh)