Aviva has agreed to sell its entire 80% shareholding in Aviva Vita, an Italian life insurance joint venture, to partner UBI Blanca for €400m.
The life insurance provider noted the transaction will increase Aviva’s net asset value by £0.1bn. It said the move would also strengthen Aviva’s Solvency II capital surplus by £0.2bn and increase its Solvency II coverage ratio on shareholder basis by approximately 4 percentage points.
The proceeds will be used to strengthen Aviva’s central liquidity and will be considered as part of Aviva’s broader capital management and debt reduction objectives.
Customers of Aviva Vita will continue to deal with it as usual, and there is no impact to customer policies as a result of this announcement.
The transaction is subject to customary closing conditions, including regulatory approval, and is expected to complete in the first half of 2021.