Aviva to Sell French Business for €3.2 Billion

Aviva has made a conscious effort to focus on its strong businesses within the UK, Ireland and Canada.  In the sale of Aviva France to Aéma Groupe for €3.2 Billion in cash.  This transaction will strengthen Aviva’s capital and liquidity.  “The sale of Aviva France is a very significant milestone in the delivery of our strategy. It is an excellent outcome for shareholders, customers, employees and distributors. The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the Group.

Aéma Groupe has a strong heritage in the French insurance industry and this transaction will propel it to a top 5 position in the French market. I am confident Aéma Groupe will be an excellent owner of Aviva France.”

This transaction entails French life, general insurance, asset management businesses and 75% shareholding.  Aviva anticipates to use the increased capital and cash to support its capital framework of debt reduction, investments and return of excess capital to shareholders. 

Aviva has agreed to customary warranties and indemnities which entail ‘known price’ contracts writteb by Abeille Vie between 1989 and 1997.