General Insurance Article - Aviva to sell stake in Italian insurer Eurovita

 Aviva plc has announced that it has reached a conditional agreement to sell its entire 39% stake in Eurovita Assicurazioni S.p.A.

 (“Eurovita”) to JC Flowers (“JCF”) for a total consideration of €33m, payable in cash. Proceeds will be used for general corporate purposes. The sale is subject to approval by IVASS, the Italian insurance regulator.

 If approved, the transaction would increase Aviva’s economic capital surplus by £0.1bn and will have no impact on Aviva’s IFRS net assets. The agreement represents further progress in Aviva’s strategy to focus our Italian business on more profitable, capital efficient products.

 Eurovita is an Italian life insurer which distributes guaranteed savings products through a network of local and regional Italian banks. Eurovita contributed £6m to Aviva’s IFRS profit after minorities in the first half of 2013. Eurovita had ca. £3bn IFRS total assets at 30 June 2013.

 Eurovita is majority owned by Aviva and Banco Popolare. Banco Popolare has agreed to sell its entire stake in Eurovita to JCF.