The deal with Blagosostoyanie is expected to be completed in the first half of 2013 and it is in line with Aviva’s strategy to narrow the group’s focus to core businesses and markets.
Blagosostoyanie, which has its head office in Moscow, has been operating in Russia for over 17 years and is currently one of the largest non-state pension funds in the country, with over 2.8m customers.
As of September 2012, Blagosostoyanie’s total assets were approximately €6.5bn, including approximately €4.2bn of pension reserves and €1.9bn of pension savings.
Mark Wilson, chief executive of Aviva, said the “transaction builds on the progress we have made to narrow Aviva’s focus”.
The transaction is still subject to the approval of the Federal Antimonopoly Service of the Russian Federation.
In a recently announced shake-up in the senior management team, one of the key new appointments saw Aviva’s existing group transformation director David McMillan taking on the role of chief executive of Aviva Europe, covering Spain, Italy, Turkey, Poland, Lithuania and Russia.
Aviva last month also reached an agreement to sell its 49% stake in Malaysian joint venture, CIMB Aviva Assurance and CIMB Aviva Takaful, to Canadian insurer Sun Life Assurance for £152m.
