Aviva sells share in Italy JV for £233m
Aviva said it has agreed to sell its stake in Italian joint venture Avipop Assicurazioni to Banco BPM for a consideration of €265m (£233m) in cash.
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The deal follows a notification received by Aviva of Banco BPM's intention to not renew its distribution agreement with Aviva which triggered an option to sell its 50% share in the venture.
The sale price 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 deal increases Solvency II capital by approximately £0.2bn.
The transaction is subject to regulatory approval and is expected to complete in 2018. Aviva said its other Italian operations were unaffected.