(PRESS RELEASE) LONDON, 4-Mar-2021 — /EuropaWire/ — Aviva’s transformation to focus on its strongest businesses continues and thus announces its exit from Italy with the sale of its remaining Italian Life and General Insurance businesses (“Aviva Italy”) for €873m in cash.
This values the businesses at €1.2bn including Unicredit Group’s 49% shareholding in Aviva S.p.A.
Key highlights:
Amanda Blanc, Chief Executive Officer of Aviva, said:
“Since I announced our new strategy in August last year, we have announced seven divestments that will generate over £5bn of cash proceeds. This rapid progress allows us to focus on transforming and growing our already strong businesses in the UK, Ireland and Canada. 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 estimated financial impact of the transactions5 on Aviva as at 31 December 2020, is:
Customers, partners, financial advisors and agents of Aviva Italy will continue to receive the same high quality service from the businesses and there is no impact to customer policies as a result of this announcement. Employees of Aviva Italy will transfer with the businesses.
Aviva expects to use the increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.
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.
Notes:
1 Primarily comprises 51% shareholding in Aviva S.p.A. and 100% shareholding in Aviva Life S.p.A.
2 Comprises Aviva Italia S.p.A.
3 Multiple presented on a 100% basis.
4 On 23 November 2020, Aviva announced the sale of Aviva’s entire 80% shareholding in Aviva Vita S.p.A. to its partner UBI Banca.
5 Estimated financial impacts of the transactions presented in isolation from impacts of other announced transactions.
6 Using 31 December 2020 GBP/EUR FX spot rate of £1/€1.12.
-ENDS-
Media contact:
Andrew Reid
+44 (0)7800 694 276
Sarah Swailes
+44 (0)7800 694 859
Analysts:
Jakub Rosochowski
+44 (0)7385 382 206
SOURCE: Aviva
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