Sale of Aviva USA at higher price a credit positive
October 7, 2013 by Michael K. Stanley
With the Oct. 2 completion of the sale of Aviva USA Corp. (Aviva USA) to Athene Holding Ltd (Athene), Aviva Plc (Aviva) was able to move on after a nine-month-long regulatory dance.
The British insurer let go of its U.S. life and annuities business for $2.3 billion, $800 million more than the initially announced price of $1.55 billion.
The higher proceeds, propelled by retained earnings and favorable market conditions coupled with the repayment of a $290 million loan, prompted Moody’s Investor Service to label the deal a credit positive for Aviva.
Originally Posted at LifeHealthPro on October 7, 2013 by Michael K. Stanley.
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