Aviva PLC (AV.LN) said Friday it has agreed to sell its joint venture in Italy, Avipop Assicurazioni SpA, to Banco BPM SpA (BAMI.MI) for 265 million euros ($311.8 million).
The U.K. insurer, which formed a bancassurance partnership with Banco BPM in 2007, said the deal follows a notification from the bank formerly known as Banco Popolare that it wouldn't renew its distribution agreement with Aviva. As a result, Aviva said in August it would exercise the put option included in the original agreement.
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Aviva said its other operations in Italy are unaffected by the transaction, which is to be completed in 2018.
The deal price is equivalent to 27.1 times Aviva's share of 2016 earnings after tax and increases its solvency II capital by approximately 200 million pounds ($268 million), the insurer added.
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(END) Dow Jones Newswires
September 29, 2017 02:55 ET (06:55 GMT)