Insurance giant Aviva PLC (LON:AV.) said it had bolstered its capital surplus by selling its entire shareholding in life insurance and pensions joint ventures Cajamurcia Vida and Caja Granada Vida for €202mln, or £178mln.
The FTSE 100 group has sold the stakes to the state owned lender Bankia for 2.1 times' Aviva's share of the IFRS net asset value and 22.5 times' Aviva's share of earnings after tax of these businesses.
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The transaction will lift Aviva's Solvency II capital surplus by £150mln, the firm said.
"This sale is a strong return for our shareholders. It means that over the past five years we have generated proceeds of £1.3bn from selling almost all of our Spanish operations," said Mark Wilson, chief executive at Aviva.
"The transaction further simplifies Aviva, strengthens our already healthy capital position and is another example of our focus on attractive, growing markets where we have high quality franchises."
Following the restructuring of the Spanish banking system, which began in 2010, Aviva has taken steps to protect the value of its distribution agreements in Spain.
In all, together with the sale announced today, the combined proceeds amount to €1.6bn (£1.3bn).
Following this transaction, Aviva will have only a stake in a small life insurance operation, Pelayo Vida, and a residual support centre in Spain, it said.