Aviva sells life arms in Eastern Europe
From Life Jan 30 2012 BY: Will Jackson
, Contributing editor
, International Adviser
Aviva plans to sell its Czech Life, Hungary Life and Romania Life & Pensions businesses to US insurance giant Metlife, according to a London Stock Exchange announcement.
The deal, which is subject to regulatory approvals, is expected to be completed this year. At the end of June 2011, the combined net assets of the businesses were about €57m ($75m).
Aviva said the sale is “consistent with [its] strategy to focus on markets where it has strength and scale”, and follows its decisions to end a partnership with National General Insurance in the United Arab Emirates and dispose of its Australian Aviva Investors business, in the second half of 2011.
According to Aviva, it is currently the only company in the Czech Republic which focuses on unit-linked savings products. The business employs more than 100 staff, has over 46,000 customers, and was the 13th largest life insurer in the Czech market in December 2010.
Aviva Hungary Life was the eight-largest life insurer in Hungary, as measured by gross written premiums, in September 2010. The business was founded as Mébit in 1996 and bought by CGNU in March 2001, before being rebranded as Aviva in 2003.
The Romanian life arm, meanwhile, was set up in 2000 and has more than 850,000 customers. The pensions business is the fifth-largest in Romania, employing around 200 people alongside a direct sales force of 1,200 agents, and serving over 300,000 customers.