Aviva has reportedly received a number of
unsolicited approaches from financial and private equity buyers for
its US unit.
Aviva USA was created from the merger between
AmerUs Group and Aviva’s US business in July 2006 for approximately
$2.9bn.
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However, according to the Daily Telegraph, the
sale of Aviva USA, will lead to the crystallisation of an
approximate £800m ($1.23bn) write-off, as a result of its fall in
value.
It is reported that although an investment
bank has not yet been formally appointed to run the process, it is
thought the company’s executives have selected a bank to do so,
which is believed to be Goldman Sachs.
Aviva declined to comment on any speculation
regarding the reported sale of its US business.
The speculation over Aviva’s US business comes
after it recently announced plans to “exit” 16 segments deemed to
be non-core as part of a revised strategic plan to focus on fewer
business segments where it believes it can produce attractive
returns.
Eastern European sale
In a separate development, Aviva plc has
completed the sale of its Czech, Hungarian and Romanian Life
businesses to MetLife’s local operating subsidiaries in those
countries.
Completion of the sale of Aviva’s Romanian
Pensions business is expected to occur later this year subject to
regulatory approval.
