Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Aviva sells US arm for £1bn in strategic overhaul

Aviva sells US arm for £1bn in strategic overhaul

Aviva is to sell its US life and annuities business in a £1.1 billion deal.

The Aviva US arm is being sold to life insurance firm Athene Holding, and will leave parent company Aviva with £1 billion in cash after a debt paydown.

The disposal is part of a strategic overhaul at Aviva as it looks to cut costs. The life insurer recently disposed of its share of Spanish venture Aseval in a deal with local bank Bankia, which netted it £494 million.

The two disposals meet Aviva's plan to narrow its focus on areas where it is already in a market leading position. It will also bolster the firm’s balance sheet, increasing liquidity and reducing credit risk exposure.

‘The sale of Aviva USA is an important step forward in the delivery of our strategic plan. It considerably strengthens Aviva's financial position, increases group liquidity and improves our economic capital surplus whilst also reducing its volatility,’ Aviva chairman John McFarlane (pictured) told the stockmarket.

‘The disposal of the US business, combined with the recent settlement with Bankia, represents a successful end to the year and sets us up well for 2013.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Play JP Morgan AM's Conte: why France is my biggest overweight

JP Morgan AM's Conte: why France is my biggest overweight

The European Smaller Companies trust fund manager is also finding opportunities within the European IPO market.

Brewin's Foster: running out of value with Sandy Nairn

Brewin's Foster: running out of value with Sandy Nairn

In this week's podcast, Guy Foster and Dr Sandy Nairn discuss caution towards the stretched valuations most stock markets today currently offer.

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter