Aviva to buy AIG’s UK protection business for £460m
- The deal will see the Aviva acquire the life insurance business of AIG for £460m
Aviva has agreed to buy AIG’s UK life insurance business for £460million.
The FTSE 100 insurer told investors on Monday that the largest acquisition to date under chief executive Amanda Blanc would drive ‘significant strategic and financial benefits’.
The London-based company said it would buy the unit – known as AIG Life UK – from Corebridge Financial, a New York-listed company majority-owned by AIG.
The FTSE 100 insurance giant has agreed to buy life insurance business of AIG for £460million
The transaction will add 1.3 million individual protection customers and 1.4 million group protection members, Aviva said, with the deal expected to close in the first half of 2024, subject to regulatory approvals.
Aviva boss Blanc said: ‘This acquisition brings significant strategic and financial benefits to Aviva.
‘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.’
Peter Zaffino, chairman and CEO of AIG and chairman of Corebridge, said the deal would help focus the business on life and retirement products in the US.
Corebridge was formed in 2021 when AIG spun off its life and retirement business and sold a portion of the company to Blackstone for $2.2billion.
Earlier this month, the firm revealed it will sell its 25.9 per cent stake in Singapore Life Holdings (Singlife), together with two debt instruments, to Sumitomo Life for £800million in cash.
The group told investors the Sumitomo Life will pay £500million for the equity stake and £300million for the two debt instruments.
Sumitomo Life is currently a 23.2 per cent shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy, Aviva said.
Aviva shares were down by 1.11 per cent to 393.80p in morning trade on Monday.
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