London-headquartered insurer Aviva has announced that it plans to exit the Turkish re/insurance market via a sale of its shareholding in AvivaSA Emeklilik ve Hayat AS (Aviva SA).
Aviva has agreed to sell its entire 40% shareholding in the Turkish join venture to Ageas Insurance International N.V.
Ageas will pay a cash consideration of £122 million for the stake in Aviva SA.
Following the transaction, Aviva’s joint venture partner, Sabancı Holding, will retain its 40% shareholding.
Aviva says the deal is expected to increase its IFRS Net Asset Value and Solvency II surplus by around £100 million.
The sale currently remains subject to closing conditions and regulatory approval, but is expected to complete in 2021.
Aviva recently announced the sale of its French business to mutual insurer Aéma Groupe for €3.2 billion in cash, following months of speculation.
The insurer has also recently offloaded its shareholding in its Italian joint life venture and its life business in Vietnam as the company pursues a strategic transformation under the new leadership of Amanda Blanc.