Insurer Aviva snaps up AIG’s UK protection arm in £460m deal
The deal will see Aviva add AIG Life UK’s 1.3 million individual protection customers and 1.4 million group members.
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Your support makes all the difference.Insurance giant Aviva has agreed to buy the UK protection arm of American International Group (AIG) for £460 million.
The deal to snap up AIG Life UK will add 1.3 million individual protection customers and 1.4 million group members.
Aviva chief executive Amanda Blanc said: “This acquisition brings significant strategic and financial benefits to Aviva.
It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth
“It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.”
The deal is expected to complete in the first half of 2024.
FTSE 100-listed Aviva said the combined businesses will “create a more efficient platform from which to serve existing and new customers”.
AIG Life was set up in 2014 following AIG’s takeover of Ageas Protect and it launched into the protection market four years later, with its acquisition of Ellipse from Munich Re.
AIG Life reported £158 million of new business sales in 2022.
The deal comes after Aviva recently sold off its 25.9% stake in Singapore Life Holdings, together with two debt instruments, to Sumitomo Life Insurance Company in a deal worth £800 million.
Ms Blanc said at the time it was a move to further simplify the business and its global footprint.
Aviva had already sold its majority stake in Aviva Singapore in 2020.