(PRESS RELEASE) LONDON, 16-Jul-2020 — /EuropaWire/ — British multinational insurance company, Aviva plc (“Aviva”) announces the closing of the sale of Friends Provident International Limited (“FPIL”) to RL360 Holding Company Limited (“RL360”), a subsidiary of International Financial Group Limited (“IFGL”).
Under the revised structure, Aviva has sold a 76% shareholding in FPIL to IFGL for £259 million, of which £209 million is in cash and £50 million in deferred cash consideration. The completion of the transaction under the revised structure will result in minimal impact on Aviva’s Solvency II capital surplus and IFRS book value as of 31st December 2019, in line with the held for sale accounting treatment. In 2019, FPIL’s operating profit was £128 million and net profit, which takes into account AVIF amortisation, was £2.5 million. FPIL did not remit any cash to Aviva in 2019.
Aviva and IFGL have entered into a shareholders’ agreement under which Aviva has certain ongoing commitments and customary rights given the minority shareholding. FPIL will continue to serve customers, partners and intermediaries as usual and there is no change to customers’ policies as a result of today’s announcement.
Aviva had previously announced the sale of 100% shareholding in FPIL to RL360 for a total consideration of £340 million, of which £310 million was cash consideration and £30 million was deferred consideration.
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SOURCE: Aviva plc