Aviva announces sale of Aviva Poland to Allianz

Aviva plc has reached a significant milestone in the execution of strategy, with the agreement to sell its entire shareholding in Aviva Poland to Allianz for a cash consideration of €2.5 billion, valuing the acquired business at €2.7 billion. 

Aviva will now focus on its strongest businesses in the UK, Ireland and Canada where it has leading market positions and strong growth potential. 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.

Key highlights:

• Realises significant value for shareholders: all cash consideration at 16.9x IFRS profit after tax3, 5.7x IFRS net asset value3 and 2.3x Solvency II Own Funds3
• Significantly improves Aviva’s financial strength with an increase in excess capital3,4 of £1.5 billion and Solvency II cover ratio3,4,5 by c. 13 percentage points
• Uplift in IFRS net asset value3,4 of £1.8 billion, representing a 46 pence per share increase from 31 December 2020 IFRS net asset value per share of 493 pence

Amanda Blanc, Chief Executive Officer 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 £7.5 billion. 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.”

“This transaction delivers excellent value for Aviva shareholders. It is also a very positive outcome for our customers, employees and distribution partners and we are confident that Aviva Poland will continue to prosper under Allianz's ownership.”

Authored by Aviva