Search

Insurance giant Aviva to quit US life and pensions market with £1.1bn sale

PUBLISHED: 12:09 21 December 2012

The Aviva building in Norwich

The Aviva building in Norwich

Norwich-based insurance giant Aviva is to quit the US life and pensions market after announcing a £1.1bn deal to offload its American arm.

The group is selling Aviva USA to Athene Holding - a major player in America’s pension annuity sector.

The move comes six years after Aviva entered the US with the acquisition of AmerUs for £1.6bn, although the group stressed it will retain its asset management presence in America.

Today’s sale comes as part of a restructuring being led by chairman John McFarlane following the departure of chief executive Andrew Moss in May amid discontent over a poor share price performance.

New chief executive Mark Wilson, the former boss of Asian insurer AIA, is due to take on the reins on January 1.

As part of the plans announced in July, Mr McFarlane is working towards the sale or scaling back of 16 underperforming businesses.

It is also cutting up to 800 jobs across the business under plans to slash costs by £400m.

Aviva has already offloaded its Sri Lankan business, sold down its stake in Dutch insurer Delta Lloyd and earlier this week announced it was netting almost £500m after agreeing a settlement to walk away from its Spanish joint venture with Bankia.

The insurer said the sale of its US business will “considerably” boost its balance sheet strength.

Mr McFarlane added: “The disposal of the US business, combined with the recent settlement with Bankia, represents a successful end to the year and sets us up well for 2013.”

Search hundreds of local jobs at Jobs24

Comments have been disabled on this article.

Management Jobs

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Insight

Matthew Taylor’s review of UK employment practices is intended to help inform legislation changes to accommodate new employment models. Bethany Whymark gauges the business reaction.

Green 100

cover

Enjoy the Green 100
digital edition

Read
0

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100

Business Most Commented