Business

Aviva completes FPIL sale

Aviva has confirmed the completion of the sale of Friends Provident International Limited (FPIL) to RL360 Holding Company Limited, a subsidiary of International Financial Group Limited.

Under the revised structure, Aviva has sold a 76% shareholding in FPIL to IFGL for £259m, of which £209m is in cash and £50m in deferred cash consideration.

It said the completion of the transaction under the revised structure will result in minimal impact on Aviva’s Solvency II capital surplus and IFRS book value as of 31 December 2019, in line with the held for sale accounting treatment.

In 2019, FPIL’s operating profit was £128m and net profit, which takes into account AVIF amortisation, was £2.5m. FPIL did not remit any cash to Aviva in 2019.

Aviva and IFGL have also entered into a shareholders’ agreement under which Aviva has certain ongoing commitments and customary rights given the minority shareholding.

It added that FPIL will continue to serve customers, partners and intermediaries “as usual” and there is no change to customers’ policies as a result of today’s announcement.

Aviva had previously announced the sale of 100% shareholding in FPIL to RL360 for a total consideration of £340m, of which £310m was cash consideration and £30m was deferred consideration.

Show More
Back to top button