Aviva Plc is purchasing American International Group Inc.’s UK protection business for £460 million in a deal that would expand the UK insurer’s presence in the local market, Bloomberg has reported.
The purchase “continues our progress in repositioning the group towards capital-light growth,” said Aviva group CEO Amanda Blanc.
Aviva has been scaling back its overseas presence as part of a strategic overhaul. It has sold off assets in markets including Italy and Singapore.
The acquisition of the AIG unit will help it reach more customers, such as small and medium enterprises and high net worth propositions, according to Aviva’s statement.
The transaction consideration represents 0.9 times AIG Life UK’s Solvency II own funds, after adjusting for expected capital synergies.