Aviva took a £132 million charge after saying two former employees breached its trading policy since 2006 to the benefit of external hedge funds.

The London-based insurer, which reported full-year results on Thursday, said it found evidence last year of “improper allocation of trades” in fixed income by Aviva Investors from 2006 to 2012.

Aviva, which has notified regulators about the improper trades, first disclosed them in a letter to clients in December. The company said measures have been implemented to improve controls.

Aviva said the total cost to operating profit from the improper trades includes the “compensation” of £126 million that is expected to be claimed in connection with the breaches and other “associated costs” of £6 million, according to a company statement. – (Bloomberg)