- Aviva acquires AIG’s UK business.
- £460 million acquisition deal.
- Strengthens UK protection market.
Aviva, a leading FTSE 100 insurer, has announced its acquisition of AIG’s UK life insurance business for a substantial sum of £460 million. Aviva’s CEO, Amanda Blanc, is likely to benefit strategically and financially from this greatest purchase.
The transaction involves the purchase of AIG Life UK from Corebridge Financial, a New York-listed company predominantly owned by AIG. As a result of this acquisition, Aviva will gain access to 1.3 million individual protection customers and an additional 1.4 million group protection members. The deal is set to conclude in the first half of 2024, pending regulatory approvals.
Aviva’s CEO, Amanda Blanc, expressed her optimism regarding the acquisition, emphasizing its positive impact on the company’s position in the thriving UK protection market. She also highlighted how this aligns with Aviva’s broader strategy of pursuing capital-light growth.
Peter Zaffino, Chairman and CEO of AIG and Chairman of Corebridge, noted that this transaction would enable AIG to concentrate on its life and retirement products in the United States. In 2021, AIG split its life and retirement business and sold a share to Blackstone for $2.2 billion, creating Corebridge.
In addition to this acquisition, Aviva recently announced the sale of its 25.9% stake in Singapore Life Holdings (Singlife) to Sumitomo Life for a total of £800 million in cash. This strategic move underscores Aviva’s commitment to optimizing its portfolio and focusing on key markets.
Despite these developments, Aviva’s shares experienced a slight decline of 1.11% in morning trading, settling at 393.80p.