A consortium of Allianz and life re/insurer Athora Holding is considering a takeover of Aviva’s French business in a deal valued at €2 billion to €3 billion, according to reports from Reuters.
Reuters sources said that Aviva has engaged JP Morgan and Rothschild to help offload its life and P&C operations in France.
Talks with Allianz have apparently reached an “advanced” stage, although AXA, Generali and French mutual insurer La Mondiale are also rumoured to have shown interest in the sale.
Sources suggest that Aviva wants to weigh its options with other possible buyers before committing to a deal with Allianz and Athora.
If given the green light, the acquisition would likely see Allianz take on the P&C business in France, while Athora would assume the run-off life insurance portfolio.
Reuters further reported that Allianz may consider a parallel deal to transfer all of its existing French run-off portfolio to Athora.
Aviva’s French operations represent the bulk of its European business, returning adjusted operating profit of £473 million pounds in 2019.
But Amanda Blanc, who took over as CEO in July, is steering the company towards increased focus on the UK, Ireland and Canada. As part of this move, sources said that Aviva may also look at options for selling its business in Italy and Poland in the coming months.
