Aviva has been actively restructuring its portfolio. Credit: chrisdorney/Shutterstock.

Aviva has concluded its acquisition of AIG Life UK from Corebridge Financial, a subsidiary of insurance major American International Group.

This move, which cost Aviva £453m, is aimed at bolstering its position in the UK protection market and part of its broader strategy to grow capital-light businesses and enhance distribution channels.

AIG Life UK, known for its individual and group protection products, is said to serve between 1.3 and 1.4 million clients and members, respectively.

The acquisition is set to capitalise on AIG Life UK’s established relationships with local and corporate independent financial advisors (IFAs) and other partners.

This deal was announced in September 2023 and has since undergone scrutiny from the UK Competition Markets Authority (CMA).

The CMA’s investigation was focused on assessing whether the acquisition could lead to reduced competition within the UK insurance sector.

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The CMA cleared the transaction late last month, paving the way for the finalisation of the deal.

At the time of the announcement of the deal, Aviva group CEO Amanda Blanc said: “This acquisition brings significant strategic and financial benefits to Aviva. It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.”

For Corebridge Financial, divesting AIG Life UK enables a sharper focus on its life and retirement products and solutions in the US market.

Meanwhile, Aviva has been actively restructuring its portfolio, as evidenced by the sale of its stake in the Singlife joint venture to Sumitomo Life Insurance Company.

The disposal aligned with Aviva’s strategy to simplify its business and concentrate on its core markets in the UK, Ireland and Canada.

Earlier this year, Aviva Canada also expanded its offerings by acquiring vehicle replacement insurance provider Optiom for £100m (C$171.94m).