Aviva Strengthens its UK Presence with £460 Million AIG Acquisition
Aviva, a prominent British insurer, is set to acquire AIG’s UK life insurance business for a staggering £460 million, marking the largest acquisition under the leadership of CEO Amanda Blanc. This strategic move underscores Aviva’s commitment to consolidating its highly attractive UK protection market presence.
AIG Life UK, the entity in question, boasts a comprehensive portfolio of individual and group protection products, serving a substantial customer base of 1.3 million individual protection customers and 1.4 million group protection members. The transaction, when completed, is expected to enhance Aviva’s strategic and financial standing.
Aviva’s Group CEO Amanda Blanc expressed her enthusiasm for the acquisition, stating, “This acquisition brings significant strategic and financial benefits to Aviva. It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the Group towards capital-light growth. We look forward to welcoming our new customers and colleagues to Aviva.”
Moreover, this acquisition presents an opportunity for existing AIG Life UK customers to leverage Aviva’s expertise and financial strength. Aviva’s track record in the protection market includes robust organic growth, making it a suitable partner for AIG Life UK. Aviva’s commitment to innovative solutions and strong partnership distribution aligns seamlessly with AIG Life UK’s approach.
The synergy between the two entities extends further. Aviva anticipates that the combined protection business will benefit from AIG Life UK’s successful ventures in small and medium enterprises and high-net-worth propositions. Additionally, this consolidation is poised to expand the customer base through AIG Life UK’s relationships with regional and corporate independent financial advisers and other key partners.
This strategic move also streamlines the Corebridge portfolio, allowing AIG to focus more intently on its Life and retirement products and solutions, which have yielded positive results in the United States. Chairman and CEO of AIG, Peter Zaffino, commented, “We are confident that Aviva will continue to provide individuals and employers with the innovative service and solutions they need to protect themselves and their employees.”
The transaction is slated to conclude in the first half of 2024, subject to customary closing conditions and regulatory approvals. Aviva’s capital management framework remains unchanged, and the company anticipates further regular and sustainable capital returns in the future.
This strategic acquisition underscores Aviva’s commitment to growth and innovation while solidifying its position as a leading player in the UK protection market.
