In an update, Aviva confirmed receipt of all necessary approvals to complete its purchase of American International Group’s protection business in the UK. AIG Life UK was sold by AIG subsidiary Corebridge Financial.
According to Aviva, the final consideration stood at £453 million. When the acquisition was first announced last September, the price tag was £460 million, with the consideration representing 0.9x AIG Life UK’s Solvency II Own Funds after adjusting for expected capital synergies.
At the time, Aviva noted: “AIG Life UK complements Aviva’s approach with a focus on innovative solutions and strong partnership distribution.
“The combined protection business will benefit from AIG Life UK’s successful SME and high-net-worth propositions and will reach more customers through AIG Life UK’s relationships with regional and corporate IFAs (independent financial advisers), as well as other key partners.”
The completed deal is expected to create what was described as “a more efficient platform” from which to serve existing and new policyholders. As of the end of 2022, AIG Life UK had 1.3 million individual protection customers and 1.4 million group protection members.
“This acquisition brings significant strategic and financial benefits to Aviva,” group chief executive Amanda Blanc stated back in September. “It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.
“We look forward to welcoming our new customers and colleagues to Aviva.”
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