British insurance giant Aviva is set to offload one of its key overseas ventures.
The company has announced that it will sell its entire 50% shareholding in its joint venture in Italy, known as Avipop Assicurazioni S.p.A, and its wholly owned subsidiary Avipop S.p.A, to Banco BPM.
Currently, the venture is owned by both Aviva and Banco BPM and distributes life and general insurance products across Italy through Banco’s bank branch network. Their partnership was formed back in 2007 with the original agreement including an option for Aviva to sell its shareholding to the bank should their distribution agreement be terminated.
At the end of June this year, Banco announced that it would not renew its bancassurance agreement with Aviva and so now Aviva has exercised its option to sell.
“This transaction will realise value for Aviva shareholders and will allow us to invest further in our future growth. Aviva has momentum in Italy and I am confident about our prospects,” said Maurice Tulloch, CEO of Aviva International Insurance. “We are now in a good position to grow our business further, with our partners and through digital.”
The value of the put option will be determined according to terms set out in the shareholders’ agreement and will be announced in due course.
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