Welcome!

.NET Authors: Ivan Antsipau, JP Morgenthal, Sandi Mappic, Yeshim Deniz, Carmen Gonzalez

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
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...