Unione di Banche Italiane S.p.A. completed the acquisition of remaining 80% stake in Aviva Vita S.p.A from Aviva plc (LSE:AV.).
April 31, 2021
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Unione di Banche Italiane S.p.A. agreed to acquire remaining 80% stake in Aviva Vita S.p.A from Aviva plc (LSE:AV.) for 400 million on November 23, 2020. The transaction represents a multiple of 8.4x Aviva Vita's 2019 IFRS profit after tax, 1.0x solvency II own Funds at 30 June 2020 and 1.2x net asset value at June 30, 2020. Aviva Vita S.p.A reported total asset of £16.3 billion (17.9 billion). The transaction is subject to customary closing conditions, including regulatory approval, and is expected to complete in the first half of 2021. The proceeds will be used to further strengthen Aviva's central liquidity and will be considered as part of Aviva's broader capital management and debt reduction objectives. In addition, a subordinated loan of 40 million provided by Aviva Italia Holding S.p.A. to Aviva Vita, will be repaid in full at completion. The transaction would increase Aviva's net asset value as at June 30, 2020 by £100 million (approximately 1110 million), strengthen Aviva's Solvency II capital surplus by £200 million (220 million) and increase its Solvency II coverage ratio on a shareholder basis by approximately 4% points. Luca Gentile of Aviva internal legal team represented the transaction. Paolo Ghiglione of Allen & Overy LLP acted as legal advisor to Aviva plc. Expected proceeds from the previously announced sale of our shareholding in Aviva Vita4 to UBI Banca, Aviva will realize over 1.3bn of cash from the sale of its insurance businesses in Italy
Unione di Banche Italiane S.p.A. completed the acquisition of remaining 80% stake in Aviva Vita S.p.A from Aviva plc (LSE:AV.) on April 1, 2021.
Aviva plc is a United Kingdom-based insurance, wealth, and retirement business company. Its segments include UK & Ireland Insurance, General Insurance, and Aviva Investors, International investments, and Other Operations. The principal activities of UK and Ireland Life operations are life insurance, long-term health and accident insurance, savings, pensions and annuity business. The principal activities of UK & Ireland General Insurance operations are the provision of insurance cover to individuals and businesses for risks associated with motor vehicles, property and liability, and medical expenses. The principal activity of Canada General Insurance operation is the provision of personal and commercial lines insurance products, for risks associated with motor, property and liability distributed through insurance brokers. It also operates Lloyd's platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.