LONDON (REUTERS) – Aviva has agreed the sale of its operations in France for 3.2 billion euros (S$5.14 billion) to Macif’s A\u00e9ma Groupe, as part of the British insurer’s shift to focus on its core operations in Britain, Ireland and Canada.<\/p>\n
London-based Aviva, led by boss Amanda Blanc, said the sale would increase excess capital by \u00a32.1 billion (S$3.37 billion) and cash of around \u00a32.8 billion.<\/p>\n
A\u00e9ma Groupe, formed in January through the merger of French mutual insurer Macif Group and A\u00e9sio Mutuelle, has eight million customers and a turnover of eight billion euros.<\/p>\n
Aviva France has three million customers and 7.8 billion euros in revenue. It covers life insurance, property and casualty and asset management markets in France.<\/p>\n
Aviva’s share price rose by 1.7 per cent at the open in London.<\/p>\n
“The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the group,” chief executive officer Blanc said.<\/p>\n
Aviva expects to use the proceeds of the sale to support debt reduction, invest for long-term growth and return excess capital to shareholders.<\/p>\n
The sale is central to Ms Blanc’s turnaround plan aimed at streamlining its business after prolonged share price weakness has concerned investors.<\/p>\n
The insurer, which aims to complete the disposal by the end of 2021, is looking to sell its continental European and Asian businesses, it said last year.<\/p>\n
Final bids for its Polish operations that could fetch around two billion euros are due on Friday, sources have previously told Reuters.<\/p>\n
It is also in the process of selling its Italian business, sources had said.<\/p>\n
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