Aviva PLC Aviva to sell FPIL (4699L)
July 19 2017 - 2:00AM
UK Regulatory
TIDMAV.
RNS Number : 4699L
Aviva PLC
19 July 2017
19 July 2017
AVIVA TO SELL FPIL
Aviva plc ("Aviva") announces the sale of Friends Provident
International Limited ("FPIL") to RL360 Holding Company Limited, a
subsidiary of International Financial Group Limited, for a total
consideration of GBP340m*.
Following a strategic review of FPIL, Aviva has concluded that
the business is not central to the group's strategy to focus on a
small number of markets where it has scale and profitability or a
distinct competitive advantage. The sale of FPIL will allow Aviva
to further reallocate capital to businesses that can achieve
leading market positions and deliver superior returns.
The consideration represents a multiple of 3.2x FPIL's 2016 net
asset value. The transaction will result in an increase of
approximately GBP100m in Aviva's Solvency II capital surplus. The
transaction will also create an IFRS loss on disposal of
approximately GBP130m, which is primarily due to the intangible
assets held on Aviva's balance sheet arising from Aviva's
acquisition of FPIL in 2015.
In 2016, FPIL made a post-tax loss of GBP2m and did not remit
any cash to Aviva Group. As a result, a disposal of FPIL is
expected to be positive to Aviva's cash dividend paying
capacity.
FPIL will continue to serve customers, partners and
intermediaries as usual and there is no change to customers'
policies as a result of today's announcement.
The transaction is subject to customary regulatory approvals and
is expected to complete in early 2018.
Chris Wei, Executive Chairman, Aviva Asia & FPIL, said:
"The sale of Friends Provident International Limited is a good
outcome for Aviva. It allows us to focus on the significant
opportunities we have to grow Aviva's business across Asia through
digital and disrupting the traditional insurance industry."
Enquiries:
Media
Nigel Prideaux +44 (0)20 7662 0215
Andrew Reid +44 (0)20 7662 3131
Analysts
Chris Esson +44 (0)20 7662 8115
Diane Michelberger +44 (0)20 7662 0911
* Total consideration comprises GBP310m in cash receivable on
completion and GBP30m in deferred consideration in the form of
preference shares in International Financial Group Limited, the
owner of RL360 Holding Company Limited
Notes to editors:
-- Aviva's LEI code is YF0Y5B0IB8SM0ZFG9G81
-- Friends Provident International provides life assurance and
investment products in Asia, the Middle East and other selected
markets. It has offices in Hong Kong, Singapore, the United Arab
Emirates and the Isle of Man.
-- Aviva provides life insurance, general insurance, health
insurance and asset management to 33 million customers.
-- In the UK we are the leading insurer serving one in every
four households and have strong businesses in selected markets in
Europe, Asia and Canada. Our shares are listed on the London Stock
Exchange and we are a member of the FTSE100 index.
-- Aviva's asset management business, Aviva Investors, provides
asset management services to both Aviva and external clients, and
currently manages over GBP340 billion in assets. Total group assets
under management at Aviva group are GBP450 billion.
-- Aviva helps people save for the future and manage the risks
of everyday life; we paid out GBP34.4 billion in benefits and
claims in 2016.
-- By serving our customers well, we are building a business
which is strong and sustainable, which our people are proud to work
for, and which makes a positive contribution to society.
-- The Aviva media centre at http://www.aviva.com/media/
includes company information, images, and a news release
archive.
-- For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
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contact the Press Officer noted above if you would like to make a
booking.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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