The London Headquartered insurance company Aviva to sell its Italian life insurance business to France’s CNP Assurance and its general insurance to Germany’s Allianz for €873 million.
Aviva said after selling its remaining business in Italy it may give cash back to shareholders as it plans to focus on Key markets of Canada, Britain and Ireland.
After this deal the company will be able to pay down 800 million pounds of debt as part of efforts to smoothen its operations.
In the year 2020 the company had reported its net profit of 2.9 billion pounds compared with 2.7 million pounds the previous year.
One of the reason for its growth and powerful performance is because of its retirement business and Core savings as well as sales of bulk annuities.
The Chief Executive Officer of Aviva, Amanda Blanc said :
“Since I announced our new strategy in August last year,”
“we have announced seven divestments that will generate over £5bn of cash proceeds,”
“This rapid progress allows us to focus on transforming and growing our already strong businesses in the UK, Ireland and Canada.”
Amanda Blanc also mentioned that the sales of Italian operations to high quality buyers will have a positive outcome for our customers, shareholders, distributors and employees.
The company had promised they would deliver quickly and the company is doing it.
She also added that the work to improve Aviva for the benefit of shareholders continues.
It was confirmed that once the transfer is done employees of Aviva will also be transferred.
The insurance company has previously said it would consider returning excess capital.
If its Solvency II ratio was above 180 per cent and also if the targets for strengthening its balance sheet is met.
Over the next three years the company has set a new target to generate 5 billion pounds of cash from its core business.
