It is the eighth transaction that Aviva has announced over the past eight months, and concludes the planned refocus of the group’s portfolio

Aviva plc has agreed to sell its entire shareholding in Aviva Poland to Allianz for €2.5bn (approximately £2.1bn).

Aviva Poland comprises of the firm’s interests in its life insurance business in Poland and Lithuania, and its Polish general insurance, asset management and pensions businesses, as well as a portfolio of financial advice, digital distribution and price comparison businesses, and Santander’s minority shareholding.

The insurer will now focus on its strongest businesses in the UK, Ireland and Canada where it has leading market positions and strong growth potential.

The transaction is subject to customary closing conditions, including regulatory and anti-trust approvals, and is expected to complete within 12 months.

Amanda Blanc, chief executive 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 £7.5bn.

“We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders. Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential.”

The divestment of Aviva Poland is the eighth transaction Aviva has announced in the past eight months, and concludes the planned refocus of the group’s portfolio.

Positive outcome

The management and employees of Aviva Poland will also transfer with the business, but there will be no impact on customers’ policies or the service they receive due to this sale.

Blanc continued: “This transaction delivers excellent value for Aviva shareholders. It is also a very positive outcome for our customers, employees and distribution partners and we are confident that Aviva Poland will continue to prosper under Allianz ownership.”

Aviva intends to use the increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.