UPDATE 1-Aviva unveils new asset management strategy

(Writes through with CEO comments)

By Simon Challis, European Insurance and Funds Correspondent

LONDON, Feb 28 (Reuters) - Aviva (AV.L: Quote, Profile, Research), Britain's biggest insurer, unveiled plans on Thursday to build a global asset management business with 316 billion pounds ($626.5 billion) of funds under management.

The firm, known as Aviva Investors, will weld together the disparate asset management businesses Aviva owns across the world, including Morley in the UK, Hibernian Investment Managers in Ireland and Portfolio Partners in Australia.

"Aviva Investors is all about capitalising on the strength of being part of the world's fifth-largest insurance group," said Alain Dromer, Aviva Investors' Global Chief Executive.

By integrating the businesses into a single global operation Aviva hopes to significantly increase asset management's contribution to Aviva's group profit over the next five years, from its current level of 155 million pounds, Dromer told Reuters in an interview.

To do that Aviva Investors must grow its profits by more than the benchmark of at least 15 percent annual growth that Aviva has set to meet its target of doubling its earnings per share by 2012.

"I am confident we can do that because of the potential that exists. I can see where we can achieve increased revenues and third-party successes. But it is quite ambitious," said Dromer.