Aviva eyes up Prudential's UK arm

Aviva could buy Prudential’s UK arm if it decides to break itself up by demerging, according to The Guardian.

Aviva chief executive Andrew Moss (pictured) would consider moving away from the insurer’s strategy of expanding in Europe if Prudential’s UK business came up for sale, a senior executive told the newspaper.

‘Moss would be unwilling to pass up an opportunity to buy Prudential's British business – valued at more than £5 billion – which could be merged with Aviva's UK interests,’ the executive told the newspaper.

‘But the price would have to be compelling to make Aviva reverse its current tack of expanding in Europe, where Moss views growth as more promising.’

Prudential has been weakened by its failed attempt to buy AIG’s Asian arm AIA, which met with shareholder opposition and cost the insurer £450 million.

Resolution has also been touted as a possible buyer for Prudential’s UK business, after its £2.75 billion acquisition of AXA’s UK life business.