Aviva shares edge up after agreeing €265m sale of Italian arm

Oliver Gill
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Insurance giant Aviva has agreed to sell a key Italian business in a deal worth €265m (£233m).

Shares in the group rose almost one per cent in early trades in the wake of the news.

The sale relates to Aviva's 50 per cent stake in a joint venture with Italian bank Banco BPM. In August, Aviva said it was not renewing a contract to sell its products in conjunction with the Italian lender.

Read more: Aviva jettisons Italian arms "to invest further in our future growth"

Aviva formed a bancassurance partnership in protection and general insurance with the former Banco Popolare in 2007.

The transaction is subject to regulatory approval and is expected to complete in 2018. Aviva’s other Italian operations are unaffected by this transaction, the insurer said.

The sale is the latest in a string of divestments by Aviva. In May, it sold shares in a Spanish arm for €475m, while in July it flogged Friends Provident to International Financial Group for £340m.

Read more: Aviva sells loss-making Friends Provident for £340m

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