Articles - Aviva simplifies its Italian joint ventures


 Aviva has announced that it has reached agreements with UBI Banca S.c.p.a. and UniCredit S.p.A. to restructure its life joint ventures in Italy.

 Aviva’s current structure in Italy is complex. Aviva has two joint ventures with UBI Banca: one owned 50% by Aviva, and one owned 50% by Aviva S.p.A., itself a joint venture between UniCredit and Aviva. In addition, Aviva S.p.A. owns minority equity investments in three of UBI Banca’s subsidiary banks.

 The transaction is a significant simplification of Aviva’s life business in Italy. As part of the restructuring, Aviva will increase its holding to 80% of the joint ventures that offer products to UBI Banca customers, with UBI Banca owning 20%. Aviva’s distribution agreement with UBI Banca will be extended from 2015 to 2020, focused on savings and life protection products. Aviva S.p.A. will also sell the minority equity investments to UBI Banca. As a result, the indirect relationship between UniCredit and UBI Banca will be decoupled.

 Aviva S.p.A., which will continue to be owned 51% by Aviva, will enter into a new five year distribution agreement with UniCredit offering selected products, and increased capital efficiency.

 Aviva will make a balancing payment of approximately £25 million to fund the transaction. The transaction is expected to be broadly neutral to Aviva plc’s economic capital and IFRS NAV at completion. The transaction is subject to customary approvals.

 David McMillan, CEO Aviva Europe, said: “This is an important step in the turnaround of our Italian business. Together with the sale of our stake in Eurovita, this transaction will simplify the structure of Aviva in Italy, increase value of new business and improve our capital efficiency.” 

Back to Index


Similar News to this Story

Is Your Customer Data AI Ready
Insurance providers hold billions of pieces of customer data but just how AI ready is that data? There is little doubt the market is on the cusp of
Putting faith in default funds
We live in a diverse society with many commonalities – one of which is the need to save for retirement. Many people are automatically enrolled into a
Unlocking the potential of IFRS 17
Since its implementation on 1 January 2023, IFRS 17 has transformed the landscape of financial reporting for insurance contracts. Listed companies hav

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.