Aviva has sold its Aviva Poland business to Allianz for £2.1bn, as it continues its process of offloading overseas operations to focus on its core UK, Ireland and Canada businesses.
The deal is the eighth transaction Aviva has announced in the past eight months, and is the last step in its international reorganisation strategy. Sales of its eight non-core businesses will generate £7.5bn.
Aviva says the deal significantly improves its financial strength with an increase in excess capital of £1.5bn and a strengthening of its Solvency II cover ratio by around 13 percentage points.
The strategy has led to an uplift in IFRS net asset value of £1.8bn, representing a 46 pence per share increase from 31 December 2020 IFRS net asset value per share of 493 pence.
Aviva CEO Amanda Blanc says: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate total cash proceeds of £7.5 billion. We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders. Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential.
“This transaction delivers excellent value for Aviva shareholders. It is also a very positive outcome for our customers, employees and distribution partners and we are confident that Aviva Poland will continue to prosper under Allianz ownership.”