15th Nov 2006 13:07
Aviva PLC15 November 2006 News release 15 November 2006 AVIVA ANNOUNCES COMPLETION OF ACQUISITION OF AMERUS Aviva plc ("Aviva") announces the completion of its acquisition of AmerUs GroupCo. ("AmerUs") following receipt of the required regulatory approvals in theUnited States. Aviva announced the proposed acquisition of AmerUs on 13 July 2006 in atransaction recommended by the board of AmerUs for a price of $69 for eachordinary share, valuing the company at approximately $3.1 billion (£1.7billion).(1) The acquisition was financed by a £900 million equity placing,internal resources and external debt. AmerUs shareholders approved thetransaction on 19 October 2006. The acquisition of AmerUs transforms Aviva's US business, making it thefourth-largest long-term savings business in the Aviva group and establishing aleading position for Aviva in a high-growth segment of the world's largestsavings market. AmerUs is a leader in the US indexed market, ranking number onein sales of indexed life insurance and third in sales of indexed annuities. Aviva anticipates annual pre-tax cost savings of approximately $45 millionbefore tax by 2008. Significant revenue benefits will also be realised from thebroader combined distribution platform and the superior financial strengthratings of Aviva. It is expected that the transaction will be accretive toGroup IFRS and EEV operating earnings per share by 2007 and 2008 respectivelyand to have an annual post-tax return on investment of over 10% by 2009. Thomas Godlasky, former CEO, AmerUs, becomes CEO of the combined business withimmediate effect. Philip Easter, currently finance director of Aviva's UKgeneral insurance business, will become chief financial officer with effect from1 January 2007, subject to US regulatory approval. Philip Easter will replaceMelinda Urion who will leave the business on 15 December 2006. The combinedbusiness will be called Aviva. Philip Scott, executive director, Aviva International, said: "Our acquisition ofAmerUs gives us a leading position within an important segment of the world'slargest long-term savings market. In a single step this provides a platform forsignificant profitable growth in the US while becoming the fourth-largest lifebusiness in the Aviva group. Integration planning of our existing US businessinto AmerUs is well-advanced and integration will begin immediately." (1) Based on a fully diluted share count of 44.9 million as at 15 November 2006. - ends - Enquiries: MediaHayley Stimpson, director of external affairs +44 (0)20 7662 7544Vanessa Booth, group media relations manager +44 (0)20 7662 2482 AnalystsCharles Barrows, investor relations director +44 (0)20 7662 8115Jessie Burrows, head of investor relations +44 (0)20 7662 2111 Notes to editors: • Aviva is one of the leading providers of life and pensions to Europewith substantial positions in other markets around the world, making it theworld's fifth largest insurance group based on gross worldwide premiums at 31December 2005. • Aviva's principal business activities are long-term savings, fundmanagement and general insurance, with worldwide total sales of £36 billion ($65billion) and assets under management of £322 billion ($552 billion) at 31December 2005. • The Aviva media centre at www.aviva.com/media includes images, companyand product information and a news release archive. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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