Aviva has announced it will transfer to Spanish banking group Bankia its entire holding in the two firms’ Spanish joint venture Aseval for £494m in cash, thereby settling legal proceedings between the two companies.
Subject to regulatory approval, the proceeds from the transaction will be used for “general corporate purposes”. The company said the capital received will increase Aviva’s economic capital surplus.
John McFarlane, chairman of Aviva, said: “This settlement is in line with our strategy to increase Aviva’s financial strength and we have realised significant value from our joint venture with Bankia.
“We remain focused on providing excellent service to our customers in Spain, through our other bank partners and distribution agencies.”
Aviva will continue to serve clients in Spain via bancassurance partnerships with NCG Banco, BMN, Caja España Duero and Unicaja, as well as agency distribution units Aviva Vida y Pensiones and Pelayo Vida.