Aviva has announced the acquisition of AIG Life Limited, known as AIG Life UK, for £460m. The deal is part of Aviva’s strategy to expand its capital-light businesses and to accelerate growth in the UK protection market.
The purchase will add 1.3 million individual protection customers and 1.4 million group protection members to Aviva’s customer base.
Amanda Blanc, group chief executive officer of Aviva, said: “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.”
The acquisition is expected to deliver both capital and expense synergies. AIG Life UK, which offers a full range of individual and group protection products, complements Aviva’s approach in focusing on innovative solutions and partnership distribution. The combined protection business will benefit from AIG Life UK’s established small and medium-sized enterprise and high net worth propositions.
The acquisition is funded through Aviva’s internal resources and is expected to offer strong financial returns. It also allows Aviva to re-capture the economics of the business that AIG Life UK reinsures internally to the wider AIG Group.
Subject to regulatory approvals and other customary closing conditions, the transaction is expected to close in the first half of 2024.
