Aviva Completes Sale of Aviva USA

RNS Number : 6038P

Aviva PLC

03 October 2013

 



News release

3 October 2013

AVIVA COMPLETES SALE OF AVIVA USA

Aviva plc ("Aviva") announces that it has completed the sale of Aviva USA Corporation, its US life and annuities business ("Aviva USA"), to Athene Holding Ltd ("Athene").

The transaction proceeds are US$2.6bn^[1] (£1.7bn) and are subject to customary completion adjustments. The proceeds are US$0.8bn higher than announced on 21 December 2012, and represent estimated earnings and other improvements in statutory surplus over the period from 30 June 2012 to 30 September 2013. Cash proceeds to Aviva are US$0.8 billion higher than announced on 21 December 2012, at US$2.3bn (£1.5bn), following repayment of an external loan of Aviva USA.

Mark Wilson, Group Chief Executive Officer, said:

"This is a solid outcome with transaction proceeds of US$2.6 billion. The sale of the US business is another milestone for Aviva: it simplifies the business, strengthens the capital position and is a step towards our goal of creating a business focused on cash flow and growth."

Enquiries:

Media

Nigel Prideaux                                                                                                           [phone]

Sarah Swailes                                                                                                           [phone]

Analysts

Colin Simpson                                                                                                            [phone]

David Elliot                                                                                                                  [phone]

Notes to editors:

About Aviva USA

·     Aviva USA is a leading provider of indexed life insurance and indexed annuities with more than 930,000 customers and employs 1,500 people.

·     Aviva acquired AmerUs Group Co in July 2006, rebranded Aviva USA.

·     Aviva USA is headquartered in West Des Moines, Iowa and has offices in Topeka, Kansas and Melville, New York.

About Aviva

·     Aviva provides 34 million customers with insurance, savings and investment products.

·     We are the UK's largest insurer and one of Europe's leading providers of life and general insurance.

·     We combine strong life insurance, general insurance and asset management businesses under one powerful brand.

·     We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.

·     The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive

·     For broadcast-standard video, please visit http://www.aviva.com/media/video/.  

·     Follow us on twitter: www.twitter.com/avivaplc

About Athene Holding Limited

·     Athene Holding is a life insurance holding company focused primarily on the retirement market and whose business, through its subsidiaries, is focused primarily on issuing and reinsuring fixed and equity indexed annuities.

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1 Transaction proceeds include repayment of an external loan of US$290m.  Based on an exchange rate of £1/$1.59.

 

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