Aviva To Sell 39% Stake In Italian Life Insurer Eurovita For EUR 33 Mln

(RTTNews) - Insurer Aviva Plc (AV, AV.L) announced Monday that it has reached a conditional agreement to sell its entire 39 percent stake in Italian life insurer Eurovita Assicurazioni S.p.A. to JC Flowers for a total consideration of 33 million euros, payable in cash.

Eurovita is majority owned by Aviva and Banco Popolare. Banco Popolare has agreed to sell its entire stake in Eurovita to JCF.

JCF III Europe Sarl is an affiliate of private investment funds managed by J.C. Flowers & Co LLC.

The company noted that proceeds will be used for general corporate purposes. The sale is subject to approval by IVASS, the Italian insurance regulator.

Eurovita distributes guaranteed savings products through a network of local and regional Italian banks. The company contributed 6 million pounds to Aviva's IFRS profit after minorities in the first half of 2013. Eurovita had about 3 billion pounds IFRS total assets as of June 30, 2013.

Aviva noted that the deal, if approved, would increase its economic capital surplus by 100 million pounds and will have no impact on Aviva's IFRS net assets. The agreement represents further progress in Aviva's strategy to focus our Italian business on more profitable, capital efficient products.