Aviva to sell Aviva Poland to German insurer Allianz for €2.5bn

Aviva, a UK-based multinational insurance company, has agreed to divest its Polish business – Aviva Poland to German insurance company Allianz for €2.5 billion in an all-cash deal.

The British insurer said that it will now concentrate on its strongest businesses in the UK, Ireland, and Canada where it claims to have top positions in the market and robust growth potential.

The sale of Aviva Poland marks the eighth deal announced by Aviva in the last eight months. It also wraps up the planned refocus of its portfolio, said the British insurance company.

Aviva CEO comments on sale of Aviva Poland to Allianz

Amanda Blanc – CEO of Aviva said: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate total cash proceeds of £7.5 billion.

“We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders.”

Aviva Poland is made up of Aviva’s stakes in life insurance business in Poland and Lithuania, and its Polish general insurance, pensions businesses, and asset management, which includes a portfolio of financial advice, price comparison, and digital distribution businesses.

Also included in the Aviva Poland business is Aviva’s 51% stake in life and general insurance joint ventures with Santander, namely Santander Aviva TUnZ and Santander Aviva TU, respectively.

Aviva to divest Aviva Poland to German insurer Allianz for €2.5bn. Photo courtesy of Colin / Wikimedia Commons / CC BY-SA 3.0

Aviva Poland annual report : Last year, the IFRS profit after tax for Aviva Poland was £130 million. The IFRS gross assets and net assets value of the Polish business of Aviva were £3.9 billion and £400 million, respectively, as of 31 December 2020.

Allianz said that the deal will enable it to double its revenues in the Polish insurance market. Besides, the German insurance company expects to gain a well-balanced business mix between property/casualty and life insurance following the acquisition.

Oliver Bäte – CEO of Allianz said: “We are delighted to further strengthen visibility of the Allianz brand in Central Eastern Europe and pursue our successful growth strategy in the region. By combining our insurance and digital expertise and strong investments in technological innovation, customers will benefit from our innovative products and outstanding services.”

Subject to receipt of regulatory and anti-trust approvals, and other customary closing conditions, the deal is likely to be closed within a year.