Aviva completes £1.3bn exit from Spain with latest deal

Insurance giant Aviva plc has offloaded its Spanish businesses in a nine-figure deal.

The London-headquartered firm this morning (February 23) announced the sale of its entire shareholding in Cajamurcia Vida and Caja Granada Vida, the life insurance and pensions joint ventures, for €202m (c.£178m).

The companies were acquired by Bankia, a banking group based in Madrid.

Aviva has taken steps to protect the value of its Spanish distribution agreements since the Spanish banking system was restructured (starting in 2010) and Aviva’s banking partners consolidated.

The company sold its stake in joint ventures with Bankia and Novacaixagalicia Grupo in 2012 and 2014 respectively. Last year, Aviva sold the majority of its remaining business to Santalucía.

Today’s sale included, the transactions delivered proceeds of €1.6bn (£1.3bn).

The latest transaction is subject to regulatory and anti-trust approvals but expected to complete in Q2 2018.

Aviva group CEO Mark Wilson said: “This sale is a strong return for our shareholders. It means that over the past five years we have generated proceeds of £1.3bn from selling almost all of our Spanish operations.

“The transaction further simplifies Aviva, strengthens our already healthy capital position and is another example of our focus on attractive, growing markets where we have high quality franchises.”

Following the transaction, Aviva will retain a stake in Pelayo Vida, a small life insurance operation, along with a residual support centre in Spain.