UK insurance giant Aviva has sold its life and pensions operations in Russia in an effort to 'narrow' its focus.
The company said on Wednesday morning that Aviva Russia had been sold to Blagosostoyanie, a non-state pension fund in Russia, for a total consideration of €35m in cash.
Aviva said that the price represents a "modest premium" to the IFRS book value of the asset.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The transaction follows the group's strategy to "narrow the [...] focus to businesses and markets where Aviva has leadership positions", the firm said.
It follows a number of recent disposals as part of this strategy: in December, Aviva sold its US life and annuities business to Athene Holding for a total of $1.8bn; meanwhile, in January, it offloaded a 49% stake in Malaysian joint venture CIMB-Aviva to Sun Life Assurance for £152m.
The Russian sale still requires the approval of the Federal Antimonopoly Service of the Russian Federation but is expected to complete before the end of the first half of 2013.
"We are pleased to have agreed the sale of our life and pensions operations in Russia to Blagosostoyanie. This transaction builds on the progress we have made to narrow Aviva's focus," said Chief Executive Officer Mark Wilson.
Lloyds, Halifax and Bank of Scotland to shut another 45 branches
Lloyds Banking Group, which includes Halifax and Bank of Scotland, is set to close a further 45 branches in 2024 - find out if a branch near you is closing.
By Vaishali Varu Published
US stock trading app Robinhood launches in the UK
The low-cost trading platform has opened another waiting list for British investors - following two failed attempts to launch in this country - and is hoping to be fully operational next year.
By Ruth Emery Published