Aviva completes Aseval settlement with Bankia

Insurance group Aviva has received 608m euros in cash from its Spanish partner Bankia following the settlement and transfer of its entire holding in Spanish joint venture Aseval to Bankia.

"The completion on this transaction demonstrates the delivery of our strategic imperatives and improves our liquidity and capital position," Aviva said.

The two groups came to an agreement over Aseval back in December, terminating the legal proceedings between them.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

In an announcement made at the time of the agreement, Aviva said the cash proceeds, which total £494m in sterling, will be used for general corporate purposes.

The transaction will increase Aviva's economic capital surplus by approximately £0.5bn, IGD capital surplus by approximately £0.4bn and IFRS net assets by approximately £0.2bn.

Aviva's share price had edged 1.3% higher to 303.70p in opening trade.

NR