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Sunday, December 23, 2012

Aviva sells US life business for £1.1bn

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Aviva sells US life business for £1.1bn
Dec 23rd 2012, 23:00

Aviva has sold its US life and annuities business to Bermuda-based life company Athene Holding for $1.8bn (£1.1bn), Insurancetimes.co.uk reported on Friday.

The insurer revealed in its third-quarter interim management statement that it was in talks to sell its US unit at a “substantial discount” to its IFRS book value of £2.4bn. Some commentators had expected the US business to be sold for between £800m and £850m.

The sale represents a loss of about £500m for Aviva. It bought its US life business from AmerUS Group in 2006 for £1.6bn.

Aviva will retain the North American asset management activities of Aviva Investors that are focused on third parties, and Aviva plc assets outside of the US.

The sale is part of Aviva's drive to improve its capital base by exiting businesses that are not producing adequate returns or where the company does not have a leading position. It has earmarked 16 units, including the US life business, that it will sell or exit.

 

 

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