LONDON :
Aviva has agreed the sale of its operations in France for 3.2 billion euros ($3.89 billion) to French insurer Macif’s Aéma Groupe, it said on Tuesday.
The London-based insurer, led by boss Amanda Blanc, said that the sale would increase excess capital by 2.1 billion pounds ($2.95 billion) and cash of around 2.8 billion pounds.
Aéma Groupe was formed in January through the merger of French mutual insurer Macif Group and Aésio Mutuelle, has 8 million customers and a turnover of 8 billion euros.
Aviva France has 3 million customers and 7.8 billion euros in revenue. It covers life insurance, property and casualty and asset management markets in France.
“The transaction will increase Aviva’s financialstrength, remove significant volatility and bring real focus to the Group,” said Chief Executive Officer Amanda Blanc.
Aviva expects to use the proceeds of the sale to support debt reduction, invest for long-term growth and return excess capital to shareholders.
The sale is central to Blanc’s turnaround plan aimed at shifting the insurer’s focus to core operations in Britain, Canada and Ireland after prolonged share price weakness has irked investors.
The insurer, which aims to complete the disposal by the end of 2021, is also looking to sell its Polish operations for around 2 billion euros, with a deadline for bids expected on Friday, sources previously told Reuters.