Aviva to sell its share of Aviva Vita to UBI Banca for €400m

UK-based multinational insurer Aviva has announced that it will sell its 80% share of Aviva Vita to Italian banking group UBI Banca for €400m.

Aviva Vita, which is Aviva’s Italian life insurance venture in collaboration with UBI Banca, was founded in 1987 and currently has assets of £16.3bn. The transaction itself is projected to strengthen the parent company’s central liquidity and increase its net asset value. 

Fundamentally, customers of Aviva Vita will be able to deal with the company in precisely the same manner as before, with no adverse impact on policies. 

“Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean business. We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders,” said Amanda Blanc, CEO of Aviva.

Global insurance continues to evolve

This news is the latest development in what appears to be an ongoing transformation for incumbent insurance firms.

In addition to the high-profile purchases of RSA Insurance and Miller in recent weeks, early reports of three ex-Hiscox executives (Richard Watson, Russell Merrett and Stuart Bridges) forming a new insurance venture at Lloyd’s with $800m in backing have emerged.

The project, called Inigo, will be based in London and is billed as a “brand new speciality insurance and reinsurance company” on the site’s landing page. Other details have yet to be added.

Commenting in the Evening Standard, Watson outlined the reasons for selecting the city of the island of Bermuda, which would have also provided considerable investment opportunities:

“Inigo has chosen London as its principal base since it regards the overall insurance ecosystem offered by Lloyd’s as exceptionally attractive and believes it will best support the growth and development of the new syndicate.”