Aviva to sell its entire shareholding in Aviva Vita for c.€400m

Written by Adam Cadle

23/11/2020

Aviva has agreed to sell its entire 80% shareholding in the Italian life insurance joint venture, Aviva Vita S.p.A. (Aviva Vita), to its partner UBI Banca for c.€400m in cash consideration.

In addition, a subordinated loan of €40m provided by Aviva Italia Holding S.p.A.to Aviva Vita, will be repaid in full at completion.

The transaction would increase Aviva’s net asset value as at 30 June 2020 by £0.12bn, strengthen Aviva’s Solvency II capital surplus by £0.22bn and increase its Solvency II coverage ratio on a shareholder basis by approximately 4 percentage points. In 2019, Aviva Vita’s IFRS profit after tax was £523m and it did not pay a dividend. The gross assets of Aviva Vita were £16.32bn as at 30 June 2020.

The proceeds will be used to further strengthen Aviva’s central liquidity and will be considered as part of Aviva’s broader capital management and debt reduction objectives.

Customers of Aviva Vita will continue to deal with the Company as usual and there is no impact to customer policies as a result of this announcement. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to complete in the first half of 2021.

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