Aviva US Business Sold For $1.8 Billion
December 22 , 2012
Aviva is all set to sell its American life insurance and annuities business unit for $1.8bn to the Bermuda-based insurance Athene Holding Ltd. The acquisition includes Aviva Life and Annuity Company in Iowa, and Aviva Life and Annuity Company in New York. The sale price, however, comes as a surprise as it is about a third of the US unit value as reported by Aviva on September 30, about 3 months ago. Aviva USA had been available on the auction block for about eight months prior to the deal coming through. Aviva has over 1,400 employees in the USA. Aviva chairman John McFarlane said, "The sale of Aviva USA is an important step forward in the delivery of our strategic plan. It considerably strengthens Aviva’s financial position, increases group liquidity and improves our economic capital surplus whilst also reducing its volatility".