Aviva is mulling a possible piecemeal sale of its Italian insurance business, sources close to the matter said.
The company’s Italian business is comprised of two joint venture agreements centered on life insurance and general insurance. One distribution agreement is with UniCredit – which expired this year. The other bancassurance partnership was with Italian financing company UBI Banca.
Sources told Reuters that both joint venture platforms are being reviewed as part of Aviva’s sale plans. One of the sources also said that UniCredit is looking to take full control of the venture ahead of a possible exit in the future.
Apart from those joint ventures, Aviva also owns a general insurance business in Italy, which operates via an insurance agent network. Sources hinted that these assets could be valued between €200 million and €300 million, and that they too would be sold as part of an entirely separate process.
Reuters reported that Aviva’s Italian general insurance business had net written premiums of £319 million (around SG$561 million).
News of Aviva’s partial divestment in its Italian business comes after the company announced the sale of its Singapore business. The insurance multinational’s business in Poland, as well as its joint ventures in Turkey and India, have also been considered as divestment candidates.
Aviva’s new CEO, Amanda Blanc, told analysts in a previous statement that the company will be selective about where it competes, adding that for the units it plans to divest, “there may be better owners for these businesses than Aviva.”