Welcome!

.NET Authors: Adine Deford, Srinivasan Sundara Rajan, David Fletcher, Pat Romanski, Tad Anderson

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
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...