Aviva in £460m purchase after long run of sell-offs

ONE of the City's biggest names turned around from a long spell of selling off businesses today, to make a major acquisition in its home market.

- Michael Hunter

Aviva announced the £460 million purchase of the UK life insurance business of the AIG.

It brings 1.3 million individual policyholders into the London company, alongside 1.4 million covered by group policies. Formerly known as Norwich Union, Aviva has around six million customers.

The deal marked a change of direction for its chief executive, Amanda Blanc, who had been selling off businesses and increasing capital return to shareholders.

That strategy came amid pressure from Europe's largest activist investor, Cevian of Sweden, which revealed a stake in Avia in 2021. By last May, Cevian had sold all of its Avia shares, after £5 billion had been returned to investors.

Cevian hailed Blanc and her team for doing what it called "an excellent job" in boosting capital returns.