Aviva buys AIG’s UK protection business for £460 million

Aviva Plc is purchasing American International Group Inc.’s UK protection business for £460 million in a deal that would expand the UK insurer’s presence in the local market, Bloomberg has reported.

Aviva will use internal resources to acquire AIG Life Ltd. from Corebridge Financial Inc., an AIG subsidiary, according to a statement on Monday. The transaction is expected to close in the first half of 2024.

The purchase “continues our progress in repositioning the group towards capital-light growth,” said Aviva group CEO Amanda Blanc.

Aviva has been scaling back its overseas presence as part of a strategic overhaul. It has sold off assets in markets including Italy and Singapore.

The acquisition of the AIG unit will help it reach more customers, such as small and medium enterprises and high net worth propositions, according to Aviva’s statement.

The transaction consideration represents 0.9 times AIG Life UK’s Solvency II own funds, after adjusting for expected capital synergies.