Aviva has announced the acquisition of AIG Life Limited from Corebridge Financial, Inc., a quoted subsidiary of AIG, for £460m.
This transaction builds upon the insurer’s momentum in the protection market. Aviva’s protection business offers high-quality customer propositions and continual improvements to the experience of customers and intermediaries.
The transaction is subject to customary closing conditions including regulatory approvals, and is expected to close in the first half of 2024.
Amanda Blanc, Group CEO of Aviva, 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. We look forward to welcoming our new customers and colleagues to Aviva.”
J.P. Morgan Securities LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Corebridge.
As part of the acquisition, Aviva will also re-capture the economics of the business that AIG Life UK reinsures internally to the wider AIG Group.
Peter Zaffino, Chairman and Chief Executive Officer of majority shareholder AIG, and Chairman of the Board of Directors of Corebridge, stated, “This transaction is another positive step toward streamlining the Corebridge portfolio to focus on the Life & Retirement products and solutions that are driving positive results in the United States. We are confident that Aviva will continue to provide individuals and employers with the innovative service and solutions they need to protect themselves and their employees.”
Kevin Hogan, President and CEO of Corebridge, said, “Corebridge is focused on leveraging our strong market position and the attractive dynamics of our core U.S. product offerings to deliver enhanced value to stakeholders.
“Since acquiring the UK Life business in 2014, we have built a well-established provider of life insurance, critical illness and income protection products in the UK. We look forward to working closely with Aviva to ensure a smooth transition for employees, customers and distribution partners.”
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