Aviva sells Italian joint venture for €265m
UK insurer Aviva said on Sept. 29 that it has agreed to sell its entire shareholding in its joint venture in Italy, Avipop Assicurazioni, which includes its wholly owned subsidiary Avipop Vita, to Banco BPM for a cash consideration of €265 million.
According to the statement, the announcement comes after Aviva received a notification of Banco BPM’s intention to not renew its distribution agreement with Aviva and Aviva’s subsequent decision, announced on 25 August 2017, to exercise its put option.
The company stated that the consideration represents 27.1 times Aviva’s share of 2016 earnings after tax and approximately 1.1 times Aviva’s share of the IFRS net asset value of the business. The transaction increases Solvency II capital by approximately £0.2 billion.
The transaction is subject to regulatory approval and is expected to complete in 2018. Aviva’s other Italian operations are unaffected by this transaction.
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