30th Nov 2021 16:30
(Alliance News) - UK insurer Aviva PLC on Tuesday said it had completed the sale of its Aviva Poland unit for EUR2.5 billion in cash to German peer Allianz SE, shedding the last of its non-core operations.
London-based Aviva, which provides savings, retirement and life insurance products, said when it first announced the deal back in March that the sale would allow it to focus on its "strongest businesses" in the UK, Ireland and Canada.
For Munich-based Allianz, the acquisition makes it the fifth-largest insurer in Poland, doubling its revenue there.
The deal values Aviva Poland at EUR2.7 billion in total, from which was subtracted a EUR200 million dividend payment.
The business comprises Aviva's interests in life insurance business in Poland and Lithuania and its Polish general insurance, asset management and pensions businesses. It also includes Aviva's 51% shareholding in life and general insurance joint ventures with Spain's Banco Santander SA. These are Santander Aviva TUnZ and Santander Aviva TU, respectively.
Aviva shares were up 1.9% at 385.30 pence on Tuesday afternoon in London. Allianz shares were up 0.9% at EUR193.62 in Frankfurt.
By Will Paige; [email protected]
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