By Adria Calatayud

 

Aviva PLC said Friday that it has agreed to sell its entire shareholding in Aviva Poland to Allianz SE for 2.5 billion euros ($2.94 billion) in cash, in a deal that concludes the refocus of the U.K. insurer's portfolio.

With Alliaz also acquiring the minority stake in Aviva Poland held by Banco Santander SA in the life, general insurance and pensions businesses, the Polish business is valued at a total EUR2.7 billion, Aviva said.

The deal is expected to close within 12 months, subject to customary closing conditions, including regulatory and anti-trust approvals, Aviva said.

The divestment of Aviva Poland is the insurer's eighth sale of a noncore business in as many months, a process that will generate total cash proceeds of 7.5 billion pounds ($10.30 billion), it said.

The FTSE 100 company said it expects to use the increased capital and cash to support its previously outlined capital framework of debt reduction, investment for long-term growth and return of excess 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," Aviva Chief Executive Amanda Blanc said.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

March 26, 2021 03:38 ET (07:38 GMT)

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