The sale marks the eighth transaction unveiled by the group in the past eight months. Being offloaded for €2.5 billion in cash, Aviva Poland comprises Aviva’s interests in life insurance in Poland and Lithuania, as well as the group’s Polish general insurance, asset management, and pensions businesses.
The divestment also includes Aviva’s 51-per-cent shareholding in life and general insurance joint ventures with Santander.
Conclusion of refocusing Aviva’s portfolio
“The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago,” said group Head Amanda Blanc. “The sale of our eight non-core businesses will generate total cash proceeds of £7.5 billion.
“We have made significant progress with our debt reduction plan and, in due course, we will make a substantial return of capital to shareholders. Our strategic focus is now on our strongest businesses in the UK, Ireland, and Canada, where we have leading market positions and strong growth potential.”
The latest deal, which the insurer said significantly improves Aviva’s financial strength, is expected to complete within 12 months.
Aviva’s strategic transformation to focus on its strongest businesses in the UK, Ireland and Canada took a step forward with the sale of Aviva France to Aéma Groupe for €3.2 billion in cash in February.