Aviva PLC (LON:AV.) has agreed to sell its Italian life insurance subsidiary for €400mln cash to its partner in the joint venture.
Continuing its recent slimming regime after offloading its Singapore business in September, the FTSE 100 life insurer said the proceeds from the sale of its 80% share in Aviva Vita SpA to partner UBI Banca will be used to strengthen central liquidity.
The sale will increase Aviva's net asset value by £0.12bn, strengthen its Solvency II capital surplus by £0.22bn and increase its Solvency II coverage ratio by approximately four percentage points, the company said.
In 2019, Aviva Vita's IFRS profit after tax was £523mln and it did not pay a dividend. The gross assets of Aviva Vita were £16.32bn as at 30 June 2020.
Amanda Blanc, chief executive of Aviva since July, said: “Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean business.
“We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders.”