Aviva Plc and Banco Popolare SC agreed to sell their 79.6 percent stake in Italian life insurer Eurovita Assicurazioni SpA to JC Flowers & Co. for 47 million euros ($64 million).
Aviva sold its 39 percent stake to the private-equity firm for 33 million euros in cash, it said in a statement today. Banco Popolare sold 2.1 percent for about 1.2 million euros, according to a separate statement. Finoa, a joint venture of the two companies, sold the rest and will be dissolved once the transaction comes into effect, Banco Popolare said.
Aviva Chief Executive Officer Mark Wilson is seeking to appease investors by selling assets and cutting costs to rebuild capital depleted by the financial crisis and shrink a 5.1 billion-pound ($8.2 billion) internal loan. The U.K.’s second-largest insurer by market value said the sale will boost its capital surplus by 100 million pounds as it plans to focus on “more profitable, capital efficient products.”
Eurovita had about 3 billion pounds ($4.8 billion) of assets at the end of June, London-based Aviva said.
Aviva shares closed at 433 pence in London, down 0.4 percent on the day, while Banco Popolare jumped 6.1 percent to 1.37 euros in Milan.