Aviva has agreed the sale of its operations in France for €3.2 billion (US$3.89 billion) to Macif’s Aéma Groupe, as part of the British insurer’s shift to focus on its core operations in Britain, Ireland, and Canada, reported Reuters.
London-based Aviva, led by boss Amanda Blanc, stated the sale would increase excess capital by £2.1 billion (US$2.95 billion) and cash of around £2.8 billion.
Aéma Groupe, formed in January through the merger of French mutual insurer Macif Group and Aésio Mutuelle, has 8 million customers and a turnover of €8 billion (US$9.7 billion).
Aviva France has 3 million customers and €7.8 billion in revenue. It covers life insurance, property, and casualty and asset management markets in France.
“The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the Group,” Chief Executive Officer Blanc said.
Aviva expects to use the proceeds of the sale to support debt reduction, invest for long-term growth, and return excess capital to shareholders.
The sale is central to Blanc’s turnaround plan aimed at streamlining its business after prolonged share price weakness has concerned investors.
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