Aviva has announced its exit from Italy as it continues its withdrawal from countries it does not see as core to its business.
In November it announced the sale of a stake in its Aviva Vita business to UBI Banca and has today confirmed the sale of the remainder of its Italian life and general insurance businesses for €873m in cash.
Aviva’s life insurance business has been sold to CNP Assurances for €543m, while Allianz has bought Aviva’s general insurance business for €330m.
Aviva says customers, partners, financial advisors and agents of Aviva Italy will continue to receive the same service from the businesses and there is no impact to customer policies as a result of this announcement. Employees of Aviva Italy will transfer with the businesses.
Aviva expects to use the increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.
Last month Aviva exited the French market, selling its French business to Aéma Group.
Aviva will realise over €1.3bn of cash from the sale of its insurance businesses in Italy.
Aviva’s series of disposals, generating £5bn, will increase its Solvency II capital surplus by around £0.2bn and its Solvency II cover ratio by around 7 percentage points.
Aviva CEO Amanda Blanc says: “Since I announced our new strategy in August last year, we have announced seven divestments that will generate over £5bn of cash proceeds. This rapid progress allows us to focus on transforming and growing our already strong businesses in the UK, Ireland and Canada. The sale of our Italian operations to high quality buyers is a positive outcome for our customers, employees, distributors and shareholders. We promised that we would deliver quickly and we are. Our work to improve Aviva for the benefit of our shareholders continues.”
