Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Aviva to sell Aviva USA for US$1.8 billion

LONDON -- (Marketwire) -- 12/21/12 --

21 December 2012

           AVIVA TO SELL AVIVA USA FOR US$1.8 BILLION


Aviva plc ("Aviva") announces that it has agreed to sell Aviva USA
Corporation, its US life and annuities business and related asset
management operations ("Aviva USA"), to Athene Holding Ltd ("Athene"),
for US$1.8 billion (GBP1.1 billion)1.  Aviva will retain the North
American asset management activities of Aviva Investors that are
focused on third parties, and Aviva plc assets outside of the USA.2

The transaction represents significant further progress in narrowing
the group's focus on businesses and markets where Aviva enjoys
leadership positions and is able to generate attractive returns with a
high probability of success. The transaction will increase Aviva's pro
forma economic capital surplus coverage ratio by 17 percentage points
to 165%3 (or the economic capital surplus by approximately GBP1.1
billion) placing the group within its target range of 160-175% of
required capital (FY11: 130%). The sale will reduce the group's credit
risk exposure by approximately 25%, and also reduce the sensitivity of
the group's economic capital results to credit spread movements by
approximately 30%4.
John McFarlane, chairman of Aviva plc, said:"The sale of Aviva USA is an
important step forward in the delivery of
our strategic plan. It considerably strengthens Aviva's financial
position, increases group liquidity and improves our economic capital
surplus whilst also reducing its volatility. "The disposal of the US
business, combined with the recent settlement
with Bankia, represents a successful end to the year and sets us up
well for 2013."

Aviva will receive sale proceeds of US$1.55 billion (GBP1.0 billion) in
cash, after the repayment of external debt. Of this, an amount of up to
$250 million may be received in the form of an interest-bearing vendor
loan, repayable in cash within 12 months of completion. Cash proceeds
will increase central group liquidity and will be used for general
corporate purposes.

The transaction values Aviva USA at 7.9x 2011 US GAAP earnings5 and
0.6x US Statutory Capital Surplus at 30 June 2012. Had the transaction
occurred at 30 September 2012, Aviva's IFRS net assets would have
reduced by GBP2.3 billion to GBP9.3 billion, IFRS NAV per share would
have reduced from 397p to 318p, and MCEV NAV would have increased by
GBP0.2 billion.

Aviva USA generated an IFRS operating profit6 of GBP223 million in 2011
and held GBP3.2 billion IFRS net assets7 and GBP39 billion IFRS total
assets as at 30 June 2012.

Athene Holding is a life insurance holding company focused principally
on the retirement market and whose business, through its subsidiaries,
is focused primarily on issuing and reinsuring fixed and equity indexed
annuities.

Completion, which is subject to regulatory approvals, is expected in
2013.

Goldman, Sachs & Co. and Morgan Stanley and Co. International plc acted
as financial advisers to Aviva.
Enquiries:
Media
NigelPrideaux     +44 (0)20 7662 0215
Andrew Reid       +44 (0)20 7662 3131
Analysts

Charles Barrows   +44 (0)20 7662 8115



Notes to editors:

Impact of this transaction

. The group's pro forma IGD solvency surplus would have decreased by
  GBP0.3 billion had the sale taken place on 30 September, however this
  is offset by a GBP0.4 billion increase on the transfer of Aseval to
  Bankia, announced on 18 December 2012. Taking into account both these
  transactions the group's pro forma IGD solvency ratio would have been
  172% compared to 165% at 30 September 2012.

. Had the transaction occurred at 30 September 2012, the accounting
  loss on sale would have been GBP1.2 billion.

. The accounting loss on sale reflects the excess of Aviva USA IFRS NAV
  over the proceeds received, offset by certain unrealised gains which
  are required to be recognised in the group income statement upon
  sale. Previously these gains had been recognised in equity only.

About Aviva USA

. Aviva USA is a provider of indexed life insurance and indexed
  annuities with more than 930,000 customers and employs 1,800 people.

. In July 2006, Aviva acquired AmerUs Group Co for $69 per share in
  cash, valuing AmerUs at approximately $2.9 billion (GBP1.6 billion),
  Aviva also assumed approximately $700 million (GBP400 million) of
  AmerUs debt and preferred stock.

. Aviva USA is headquartered in West Des Moines, Iowa and has offices
  in Topeka, Kansas and Melville, New York.

. Aviva USA's CEO is Christopher Littlefield, and CFO is Brenda Cushing.

About Aviva Investors North America

. Aviva Investors is the global asset management business of Aviva.

. As of 30 September 2012, Aviva Investors North America had $82
  billion in assets under management and 247 employees in Chicago,
  New York, Boston, Louisville and Toronto.

About Aviva

.  Aviva provides 43 million customers with insurance, savings and
   investment products.

.  We are the UK's largest insurer and one of Europe's leading
   providers of life and general insurance.

.  We combine strong life insurance, general insurance and asset
   management businesses under one powerful brand.

.  We are committed to serving our customers well in order to build a
   stronger, sustainable business, which makes a positive contribution
   to society, and for which our people are proud to work.

.  The Aviva media centre at www.aviva.com/media includes images,
   company and product information and a news release archive

.  For broadcast-standard video, please visit
   http://www.aviva.com/media/video/.   Follow us on twitter:
   www.twitter.com/avivaplc



------------------------------------------------------------------------

1 Headline price equates to cash payment of $1,550m plus retirement of
an external loan financing agreement of $257m. Total US dollar headline
price is converted to pounds sterling at GBP1/$1.62.

2 The US-based asset management operations of Aviva Investors, which
manage the funds of Aviva USA, will form part of the transaction.
Following the acquisition by Athene Holding, the associated funds will
be transferred to Athene Holding. The asset management operations of
Aviva USA had assets under management of GBP38 billion at 30 June 2012.

3 The estimated pro forma economic capital position as at 30 September
2012 includes the impact of the transfer of Aseval to Bankia, announced
on 18 December 2012. The term 'economic capital' does not imply capital
as required by regulators or other third parties.

4 Based on the Group's 30 September 2012 economic capital credit risk
exposures.

5 Adjusted for loan interest to Aviva

6 Pre-tax and after adjusting for the perimeter of the transaction,
which includes the retention of Aviva Investors' US-based third party
asset management business by Aviva.

7 GBP3.2bn represents the net assets of the business including the
shareholder loan.



                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...