Aviva underlined its commitment to focusing on the UK, Ireland and Canada this week by confirming it is to sell its French business for £3.2bn.
Aviva France is being sold to Aéma Groupe in a move that it said “significantly strengthens” its capital and liquidity with an increase in excess capital of around £2.1bn and centre cash of around £2.8bn.
Separately, the insurance giant also announced it is to sell its entire 40% shareholding in its joint venture in Turkey, AvivaSA Emeklilik ve Hayat AS, to Ageas Insurance International for a cash consideration of £122m. Aviva’s joint venture partner, Sabancı Holding, will retain its 40% shareholding as part of that deal.
Aviva chief executive Amanda Blanc (pictured) said that the sale of Aviva France is a “very significant milestone” in the delivery of its strategy. She said: “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.”
Blanc added that Aéma 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.
She said: “I am confident Aéma Groupe will be an excellent owner of Aviva France.’
The transaction covers the French life, general insurance, and asset management businesses and the (75%) shareholding in UFF (“Aviva France).
The transaction is subject to consultation and customary conditions, including regulatory approvals, and is expected to complete by the end of 2021.