Aviva has completed the sale of certain businesses in Spain – for a whopping SGD$762 million (€475 million).
Santalucia has bought Aviva’s retail life insurance business Aviva Vida y Pensiones, as well as its 50% shareholding in life insurance and pension joint ventures Unicorp Vida and Caja España Vida.
Earlier this year Aviva said the total price was approximately 1.5 times Aviva’s share of the 2016 IFRS (International Financial Reporting Standards) net asset value and 12 times Aviva’s share of 2016 earnings after tax of the businesses.
However, the divestment does not mean Aviva is pulling out of the Spanish market. The insurer will continue to hold shareholdings in life insurance joint ventures with Banco Mare Nostrum’s Caja Granada and Cajamurcia, as well as with Pelayo Group.
According to Aviva, the transaction – part of a strategic review of its Spanish operations – was in line with its strategy of putting capital into markets where it can deliver higher returns.
“The consideration of €475 million is an attractive valuation and the sale further simplifies the group,” said Aviva group chief executive Mark Wilson. “It highlights our absolute focus on allocating capital effectively across the group and further strengthens our capital and liquidity position.”
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