By Matteo Castia

 

Aviva PLC said Tuesday that it is selling its French business to mutual insurer Aema Groupe for 3.2 billion euros ($3.89 billion) in cash.

The FTSE 100 listed insurer said the deal is expected to be completed by the end of this year.

The company said the deal will significantly strengthen its liquidity position and realize considerable value for shareholders.

Aviva said it will use the proceeds to support its debt-reduction plan, investment for long-term growth, return of excess capital to shareholders, and to accelerate the repayment of some of the its internal loan with Aviva Insurance Ltd.

 

Write to Matteo Castia at matteo.castia@dowjones.com

 

(END) Dow Jones Newswires

February 23, 2021 02:34 ET (07:34 GMT)

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