Life Insurance  

Aviva sells US life business

Aviva has completed the sale of Aviva USA Corporation for $800m (£490m) more than it announced on 21 December 2012.

Cash proceeds to Aviva are $800m (£490m) higher than announced on 21 December 2012, at $2.3bn (£1.5bn), following repayment of an external loan of Aviva USA.

In December Aviva announced that it has agreed to sell Aviva USA Corporation, its US life and annuities business and related asset management operations, to Athene Holding Ltd , for $1.8bn (£1.1bn).

Article continues after advert

Aviva previously said the transaction represents significant further progress in narrowing the group’s focus on businesses and markets where Aviva enjoys “leadership positions” and is able to generate attractive returns with a high probability of success.

Mark Wilson, group chief executive officer of Aviva, said the sale was “a solid outcome”.

He said: “The sale of the US business is another milestone for Aviva: it simplifies the business, strengthens the capital position and is a step towards our goal of creating a business focused on cash flow and growth.”

The sale of Aviva’s US business is just the latest in a number of deals the insurance giant has struck to offload overseas arms.

Back in February, as part of its ongoing programme of rationalising its international business interests, Aviva sold its Russian business to Blagosostoyanie, a non-state pension fund in Russia.

Blagosostoyanie picked up Aviva’s Russian business for a cash consideration of €35m (£30.3m), representing a slight premium to the business’ book value.