Aviva has agreed the sale of its 80% stake in Italian life insurance joint venture Aviva Vita to partner UBI Banca.
On completion Aviva will receive €400m in cash. The transaction represents a multiple of 8.4 times Aviva Vita’s 2019 profit after tax.
In addition a subordinated loan of €40m provided by Aviva Italia Holdings to Aviva Vita, will be repaid in full at completion.
The gross assets of Aviva Vita were £16.32b as at 30 June 2020.
The proceeds will be used to further strengthen Aviva’s central liquidity and will be considered as part of its broader capital management and debt reduction objectives.
The deal is subject to customary closing conditions, including regulatory approval, and is expected to complete in the first half of 2021.
Chief executive of Aviva, Amanda Blanc, said: “Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we
reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean
business. We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders."
