Aviva to sell holding in Italian insurer Eurovita

18th Nov 2013 07:03

Insurer Aviva has announced plans to offload its entire stake in Italian insurance group Eurovita Assicurazioni in a bid to boost capital and focus on more profitable lines.If approved by Italian insurance regulator IVASS, the 39% shareholding is being sold to JC Flowers for a total consideration of €33m in cash, which will be used for "general corporate purposes".Aviva said the deal would lift its economic capital surplus by £0.1bn and have no impact on its level of net assets."The agreement represents further progress in Aviva's strategy to focus our Italian business on more profitable, capital efficient products," the company said.Eurovita, which provides savings products through a network of local and regional Italian banks, contributed £6m to Aviva's profit in the first half 2013.JC Flowers has also agreed to buy Banco Popolare's stake in Eurovita to become the majority shareholder.BC