Aviva has acquired AIG Life UK from AIG subsidiary Corebridge Financial for £460m.
AIG Life UK provides a full suite of individual and group protection products. It had 1.3 million individual protection customers and 1.4 million group protection members as of the end of last year.
Health & Protection has contacted AIG and Aviva about the deal including how many employees will be affected and was told AIG has around 450 employees (FTEs) in this business.
A year ago AIG launched the initial public offering (IPO) of its life and retirement business that saw it sold off as a separate entity, but this morning Aviva announced it has purchased AIG’s UK protection business.
Aviva said the deal builds upon its momentum in the protection market, where it has “delivered strong organic growth” and would position “existing AIG Life UK customers to benefit from Aviva’s expertise and financial strength”.
Aviva added the combined businesses “will create a more efficient platform from which to serve existing and new customers”.
As part of the transaction, Aviva will also re-capture the economics of the business that AIG Life UK reinsures internally to the wider AIG Group.
It is subject to customary closing conditions including regulatory approvals and is expected to close in the first half of 2024.
Amanda Blanc, group CEO of Aviva, said: “This acquisition brings significant strategic and financial benefits to Aviva.
“It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.
“We look forward to welcoming our new customers and colleagues to Aviva.”
Peter Zaffino, chairman and CEO of majority shareholder American International Group, and chairman of the board of directors of Corebridge, said: “This transaction is another positive step toward streamlining the Corebridge portfolio to focus on the life and retirement products and solutions that are driving positive results in the United States.
“We are confident that Aviva will continue to provide individuals and employers with the innovative service and solutions they need to protect themselves and their employees.”
Kevin Hogan, president and CEO of Corebridge, said: “Corebridge is focused on leveraging our strong market position and the attractive dynamics of our core US product offerings to deliver enhanced value to stakeholders.
“Since acquiring the UK life business in 2014, we have built a well-established provider of life insurance, critical illness and income protection products in the UK.
“We look forward to working closely with Aviva to ensure a smooth transition for employees, customers and distribution partners.”
J.P. Morgan Securities acted as financial adviser and Skadden, Arps, Slate, Meagher & Flom acted as legal counsel to Corebridge.