Aviva plc has said that the firm intends to sell the remaining 19.4% of its stake in Delta Lloyd NV, an Amsterdam-based financial services provider, for £353m ($555m).
The Delta Lloyd Group, which mainly trades under the brand names of Delta Lloyd, OHRA and ABN AMRO Insurance in the Netherlands, and under the Delta Lloyd name in Belgium, offers life insurance, general insurance, asset management and banking products and services.
Aviva said that the offering is expected to comprise up to 34 million Delta Lloyd ordinary shares (subject to investor demand), being Aviva’s entire remaining stake in Delta Lloyd.
The insurer said that the move is consistent with its strategy of narrowing focus on fewer business segments and building financial strength.
The transaction will increase the Group’s economic capital surplus coverage ratio by approximately 4% to 169%, strengthen Aviva’s balance sheet and increase liquidity.
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