Aviva’s US unit attracts buyer interest

Aviva, the UK’s second largest insurance group, has received a number of unsolicited approaches from financial and private equity buyers for a US unit estimated to be worth some £1bn, a Sunday newspaper reported.

By The Newsroom

Published 30th Jul 2012, 07:00 BST

The paper claimed that Pat Regan, chief financial officer, has spent a considerable amount of time in Des Moines, Iowa, where the business is headquartered, to prepare the business for sale.

Aviva is seeking to sell or close more than a quarter of its businesses as part of a turnaround drive aimed at regaining the support of investors irked by a flagging share price.

Earlier this month it sold half its stake in Dutch rival Delta Lloyd for £318m. Aviva is hoping to raise a similar sum from the sale of its Malaysian business.

Aviva has not formally appointed an investment bank to run the process of selling Aviva USA but is expected to choose Goldman Sachs, the newspaper said.

Aviva is a major private sector employer with 4,500 staff in Yorkshire, including 1,700 in Sheffield.

Its life business is headquartered in York.