Aviva to sell French business to Aema for €3.2bn
Aviva has agreed to sell its French business to Aema Groupe for €3.2bn in cash as it looks to focus on its strongest businesses in the UK, Ireland and Canada.
The company said the deal strengthens its capital and liquidity with an increase in excess capital of about £2.1bn and realises "significant" value for shareholders. It also provides security to employees and continuity of service to customers under new ownership.
Aviva said the transaction will increase its Solvency II capital surplus by around £0.8bn and Solvency II cover ratio by approximately 22 percentage points.
Chief executive officer Amanda Blanc said: "The sale of Aviva France is a very significant milestone in the delivery of our strategy. It is an excellent outcome for shareholders, customers, employees and distributors. The transaction will increase Aviva's financial strength, remove significant volatility and bring real focus to the group.
"Aema Groupe has a strong heritage in the French insurance industry and this transaction will propel it to a top five position in the French market. I am confident Aema Groupe will be an excellent owner of Aviva France."
The deal, which is subject to consultation and regulatory approvals, is expected to complete by the end of the year.
Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.