Aviva plc (“Aviva”) confirms the completion of the sale of Friends Provident International Limited (“FPIL”) to RL360 Holding Company Limited (“RL360”), a subsidiary of International Financial Group Limited (“IFGL”).
Under the revised structure, Aviva has sold a 76% shareholding in FPIL to IFGL for £259 million, of which £209 million is in cash and £50 million in deferred cash consideration. The completion of the transaction under the revised structure will result in minimal impact on Aviva’s Solvency II capital surplus and IFRS book value as of 31st December 2019, in line with the held for sale accounting treatment. In 2019, FPIL’s operating profit was £128 million and net profit, which takes into account AVIF amortisation, was £2.5 million. FPIL did not remit any cash to Aviva in 2019.
Aviva and IFGL have entered into a shareholders’ agreement under which Aviva has certain ongoing commitments and customary rights given the minority shareholding. FPIL will continue to serve customers, partners and intermediaries as usual and there is no change to customers’ policies as a result of today’s announcement.
Aviva had previously announced the sale of 100% shareholding in FPIL to RL360 for a total consideration of £340 million, of which £310 million was cash consideration and £30 million was deferred consideration.
-ENDS-
Enquiries
Media:
Andrew Reid
+44 (0)7800 694 276
Sarah Swailes
+44 (0)7800 694 859
Analysts:
Chris Esson
+44 (0)20 7662 8115
Diane Michelberger
+44 (0)20 7662 0911
Notes to editors:
- We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
- We help our 19.6 million (as at 31 August 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2024, total Group assets under management at Aviva Group were £398 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2024 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on:
- X: www.x.com/avivaplc
- LinkedIn: www.linkedin.com/company/aviva-plc
- Instagram: www.instagram.com/avivaplc
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
