Aviva has agreed to sell the entire shareholding in its Polish arm to Allianz for a cash consideration of €2.5bn (£2.14bn, $2.95bn).
Aviva Poland comprises life insurance business in Poland and Lithuania, and its Polish general insurance, asset management and pensions businesses, including a portfolio of financial advice, digital distribution and price comparison businesses.
It also includes Aviva’s 51% shareholding in life and general insurance joint ventures with Santander, Santander Aviva TUnZ and Santander Aviva TU, respectively.
Santander will retain its 49% shareholding in the life and general insurance joint ventures.
There will be no impact on customers’ policies as a result of this deal, and clients and distribution partners of Aviva Poland will continue to receive service from the business.
The management and employees of Aviva Poland will transfer with the business.
‘Refocus’
The divestment of Aviva Poland is the “eighth transaction Aviva has announced in the past eight months, and this successfully concludes the planned refocus of the group’s portfolio”.
Aviva recently sold its remaining Italian life and general insurance businesses for €873m, its French operation to Aéma Groupe for €3.2bn and its 40% stake in Turkish joint venture AvivaSA Emeklilik ve Hayat AS.
Amanda Blanc, chief executive of Aviva, said: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago.
“The sale of our eight non-core businesses will generate total cash proceeds of £7.5bn ($10.34bn, €8.77bn).
“We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders.
“Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential.”
