Reinsurance News

Macif, Generali & CVC to join bidding war for Aviva’s French business

26th October 2020 - Author: Matt Sheehan

Reports suggest that mutual insurer Macif and a consortium consisting of Generali and investment firm CVC Capital Partners are readying their bids for an acquisition of Aviva’s business in France.

Last month, sources at Reuters said a consortium of Allianz and life re/insurer Athora Holding were in talks to takeover the business in a deal valued at €2 billion to €3 billion.

However, it’s thought that these exclusive talks are set to expire at the end of October, which has led several other would-be buyers to start preparing their own offers on the sidelines.

According to reports from French newspaper Les Echos, Macif has already begun working on a financing solutions with Credit Suisse to raise up to €4 billion for an acquisition.

And meanwhile, Generali and CVC are partnering on an offer that would see the Italian insurer take 30% of a holding company absorbing Aviva France, while also taking over certain non-life insurance assets.

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If the Allianz/Athora consortium wins the business, a deal would likely mean Allianz taking on Aviva’s P&C business in France, and Athora assuming the run-off life portfolio.

Analysts at Morgan Stanley value Aviva’s French business at £3.3 billion, and believe that Aviva could raise around £7.2 billion from disposals in France, Poland and Italy.

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