JC Flowers, a New York-based private equity firm, said that the transaction is pending receipt of approvals from IVASS as well as the Italian insurance regulator.
The British insurance firm said that the deal will enable it to focus its Italian business on more profitable, capital efficient products, while enhancing its economic capital surplus by £0.1bn. The earnings from the sale would be invested for general corporate purposes.
Eurovita distributes guaranteed savings products through a network of local and regional Italian banks.
Majority owned by Aviva and Banco Popolare, Eurovita contributed £6m in the first half of 2013 to Aviva’s IFRS profit after minorities. Banco Popolare also has agreed to sell its entire stake in Eurovita to JCF.
Following closing of the proposed transaction, Aviva will continue to cater life and general insurance products to over 2.5 million customers in Italy, through bancassurance partnerships with Banco Popoplare, UBI Banca and Unicredito, as well as through Credem, Fineco and UBI BPI.