Aviva has sold its Dutch business to Germany’s Allianz for 2.5 billion euros ($2.94 billion) in cash, completing a program that began last year to sell assets in Europe and Asia, with Allianz’s bid surpassed those of Italian company Generali and Dutch insurance company NN.
It is worth noting that Aviva CEO, who was appointed last July, called “Amanda Blanc” is still continuing to sell the company’s assets to focus on Aviva’s core business of general and life insurance in Britain, Canada and Ireland, and the company also has joint ventures in China and India, it is expected that the sales of its business will raise a total of about 7.5 billion pounds (equivalent to 10.31 billion dollars) in cash.
Allianz, which entered the Polish market in 1997, is the largest insurance company in Europe, and stated that the deal will make it second in the Eastern and Central European market in terms of operating profit, and the company also has several other businesses in the region such as its operations in Russia and Ukraine.
Aviva investors are hoping to get plenty of cash from its wave of asset sales, and the deal price for the Polish business has beat analysts’ expectations after the three takeover races were allowed to raise the bar for their bids.
The strongest offer came from Allianz, which will also buy Santander’s minority stake in the Polish Aviva business. This brings the total value of the deal to 2.7 billion euros, and Aviva added that Santander Bank will retain its 49% stake in their joint life and general insurance business.