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
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter