Aviva to Acquire AIG’s UK Protection Business for £460m
Aviva, the London-based FTSE 100 insurer, has announced its agreement to purchase AIG’s UK life insurance business for £460 million. This acquisition, under the leadership of CEO Amanda Blanc, marks Aviva’s largest deal to date and is expected to bring significant strategic and financial benefits.
The transaction involves Aviva acquiring AIG Life UK from Corebridge Financial, a majority-owned subsidiary of AIG listed on the New York Stock Exchange. Upon completion, Aviva will gain 1.3 million individual protection customers and 1.4 million group protection members, solidifying its position in the highly attractive UK protection market.
Subject to regulatory approvals, the deal is anticipated to close in the first half of 2024. Aviva CEO Blanc expressed enthusiasm for the acquisition, stating, “This acquisition brings significant strategic and financial benefits to Aviva. It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the Group towards capital-light growth. We look forward to welcoming our new customers and colleagues to Aviva.”
Peter Zaffino, Chairman and CEO of AIG and Chairman of Corebridge, highlighted that this transaction would enable AIG to focus on its life and retirement products in the US market. Corebridge was established in 2021 when AIG spun off its life and retirement business and sold a portion to Blackstone for $2.2 billion.
Earlier this month, AIG also sold its 25.9% stake in Singapore Life Holdings (Singlife) and two debt instruments to Sumitomo Life for £800 million in cash. Aviva noted that Sumitomo Life is an existing shareholder in Singlife and views Singapore as a crucial market in its Southeast Asia strategy.
Following the announcement, shares of Aviva declined by 1.11% to 393.80p in morning trade on Monday.
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