RSA Insurance has announced plans that could lead to the loss of up to 250 jobs at its Lynchwood House office in Peterborough, following its decision to withdraw from the personal insurance market.
The insurer, which employs around 450 staff in the city, confirmed the roles are now under consultation.
The company’s move follows a January decision by Nationwide to appoint Aviva as its new provider for home insurance services. RSA had previously handled the Nationwide account but confirmed in December 2023 that it would exit the personal insurance space.
Aviva is expected to manage the transferred business from its offices in Perth and Glasgow, beginning in autumn 2025.
RSA confirmed in a report from the Peterborough Telegraph that it has been in discussions with Unite and that consultation will continue.
A company spokesperson said a small number of roles will be reduced in September 2025, with most job reductions expected to occur in 2026 as the Nationwide account is gradually wound down over a two-year period.
The insurer also said that it will look to redeploy staff where possible and offer support throughout the process, including career transition services, recruitment events and outreach to other employers in the area.
Meanwhile, RSA parent Intact Financial Corporation recently released its fourth-quarter 2024 financial results, reporting a 5% increase in operating direct premiums written (DPW).
In the past six months, several UK insurance firms have announced job cuts due to various strategic and economic factors.
Direct Line Group revealed plans in November to eliminate approximately 550 positions, representing about 5% of its workforce. This decision is part of a broader initiative to reduce costs by £100 million by the end of 2025.
The company has faced declining customer policies and gross written premiums, attributed to competitive market conditions and increased claims costs. These challenges have led to multiple profit warnings and a significant drop in share price.
The recent job cuts follow earlier reductions in 2014, when Direct Line closed 14 of its 27 UK offices and made other redundancies.
Aviva, which had acquired Direct Line in a £3.7 billion deal, also announced that the deal is projected to result in up to 2,300 job cuts over three years due to overlapping roles, affecting approximately 5-7% of the combined workforce.
Aviva said that it aims to achieve £125 million in annual pre-tax cost savings within three years, with anticipated one-off integration costs of around £250 million. Prior to this, Aviva had also implemented job reductions in 2019, cutting around 1,800 roles over three years as part of a restructuring plan.
Unite the union, which represents employees at both RSA and Aviva, said that across RSA’s UK operations, more than 300 jobs could be affected. The union has called for both firms to work together to limit the number of redundancies.
Unite national officer Caren Evans said the proposed cuts would have a significant impact on the Peterborough community and added that the union is engaging with the company to examine alternatives and secure redeployment where possible.
Sharon Graham, general secretary of Unite, criticised the decision and said the workforce at RSA is facing unnecessary losses. She said the affected employees have specialised skills and should receive appropriate treatment and consideration.
Peterborough City Councillor Julie Stevenson commented on social media that RSA is a key local employer in Orton and its potential downsizing is a matter of concern for the community.
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