Aviva announces exit from Italy

Written by Adam Cadle

04/04/2021

Aviva has announced its exit from Italy with the sale of the firm's remaining Italian life and general insurance businesses for £873m in cash.

Its life insurance business has been sold to CNP Assurances for €543m, and its general insurance business has been sold to Allianz for €330m.

Collectively the transactions represent a multiple of 0.8x Solvency II own funds and 1.5x IFRS net asset value as at 31 December 2020. Together with expected proceeds from the previously announced sale of our shareholding in Aviva Vita to UBI Banca, Aviva will realise over €1.3bn of cash from the sale of its insurance businesses in Italy.

The estimated financial impact of the transactions on Aviva as at 31 December 2020, is:

- Increase of Solvency II capital surplus6 by c.£0.2bn and Solvency II cover ratio by c.7 percentage points;
- Increase of excess capital above 180% Solvency II cover ratio by c. £0.7bn;
- Increase in IFRS net asset value of c. £0.2bn.

Aviva CEO Amanda Blanc said: “The sale of our Italian operations to high quality buyers is a positive outcome for our customers, employees, distributors and shareholders. We promised that we would deliver quickly and we are. Our work to improve Aviva for the benefit of our shareholders continues.”

The transactions are subject to customary closing conditions, including regulatory and anti-trust approvals, and are expected to complete in the second half of 2021.

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