Aviva to sell Italian insurer stake to JC Flowers

Aviva has announced this morning that its reached a conditional agreement to sell all of its 39 per cent stake in Italian insurer Eurovita Assicurazioni to private equity firm JC Flowers, for €33m. (Release)

Proceeds, said the insurance group, will be used for general corporate purposes. Two weeks ago, Aviva said that there "remains much work to be done" on its recovery plans, as it saw a 14 per cent rise in new business to £571m for the first nine months of the year.

Eurovita contributed £6m to Aviva's international financial reporting standards (IFRS) profit, after minorities, in the first half of 2013. The sale is subject to approval by the Italian insurance regulator.