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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Zoopla expects house prices to remain ‘subdued’ despite surge in buyer demandNews Zoopla’s latest house price index showed a fall in mortgage rates had boosted property market confidence. But a rise in supply has kept house price inflation in check.
-
Best funds to add to your ISA or SIPP before the BudgetWith Labour expected to increase taxes, ISAs and SIPPs could be a great way to protect yourself from CGT hikes. We look at the best funds to buy now
