Aviva has sold its entire stake in life insurer Antarius to a Société Général subsidiary but will continue to manage a chunk of its assets.
Aviva sold its 50 per cent shareholding in Antarius, a joint venture with separate Société Générale subsidiary Crédit du Nord, to Sogecap for approximately £425m.
The consideration represents approximately 1.7 times Aviva’s share of the IFRS net asset value of Antarius and 16.4 times Aviva’s share of the earnings after tax. This makes the transaction price around £180m higher than Aviva’s IFRS book value and increases Solvency II capital by approximately £200m.
The deal follows Crédit du Nord’s 2015 decision to exercise its option to purchase Aviva’s shareholding in Antarius.
Aviva Investors France reached a separate deal with Sogecap to continue to manage more than €10bn (£8.5bn) of Antarius assets.
Mark Wilson, group chief executive officer at Aviva, said: “This is a good deal at an attractive valuation and the sale realises a strong return for our shareholders.
“We have also agreed a new investment management mandate with Antarius and we look forward to continuing our long and successful partnership with Société Générale.”
Aviva bought the 50 per cent stake in Antarius in 2004 as part of a 12 year distribution agreement to sell life insurance and protection products exclusively through Crédit du Nord's network. Terms of the agreement also gave Crédit du Nord the option to buy Aviva’s shareholding in Antarius.