PRESS RELEASE: US$325 Million Reserve Financing Transaction for Aviva USA Corporation

13th Jul 2010 13:04

DES MOINES, Iowa--(BUSINESS WIRE)--July 13, 2010-- Aviva Life and Annuity Company ("ALAC") and Aviva Life and Annuity Company of New York ("ALACNY"), the principal operating subsidiaries of Aviva USA Corporation, a member of the Aviva Group, and Credit Agricole Corporate and Investment Bank ("Credit Agricole CIB"), the Corporate and Investment Banking arm of the Credit Agricole Group, jointly announce a US$325 million reserve financing transaction closed on 23 June 2010. Aviva has completed a financing transaction for its subsidiaries ALAC and ALACNY, addressing both "Regulation AXXX" and "Regulation XXX" reserve requirements. The US$325 million transaction was arranged by Credit Agricole CIB. Reinsurance credit is provided by Aviva Re USA II, Inc., a wholly-owned Aviva reinsurance captive subsidiary ("Aviva Re II"), to each of ALAC and ALACNY through long term letters of credit issued by Credit Agricole CIB. The transaction allows Aviva Re II to provide reserve credit to ALAC and ALACNY for "Regulation AXXX" and "XXX" reserve requirements related to a block of term and universal life insurance policies. The transaction provides a long term, flexible and cost effective solution for "Regulation AXXX" and "XXX" requirements in the United States and was successfully executed against the backdrop of continuing challenging market conditions. Credit Agricole CIB acted as Sole Structuring Agent and Sole Lead Arranger. The financing covers a portfolio of 10-, 20- and 30-year level premium term products originated by ALAC and ALACNY in 2008 and 2009, and a portfolio of equity-indexed universal life and guaranteed universal life products originated by ALAC and ALACNY in 2009. About Aviva USA -- Aviva USA is part of Aviva plc and a sales leader of fixed indexed annuities and fixed indexed life insurance -- Headquartered in Des Moines, Iowa, Aviva USA has additional offices located in Topeka, Kansas, and Woodbury, New York -- Aviva USA has approximately one million customers and employs nearly 1 500 people across the United States About Aviva plc -- Aviva plc is the world's fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific -- Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of (GBP)45.1 billion and funds under management of (GBP)379 billion at 31 December 2009 -- Aviva is the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe * based on gross worldwide premiums at 31 December 2008 www.aviva.com About Credit Agricole Corporate and Investment Bank Credit Agricole CIB's activities are organised around four major divisions: Coverage and Investment Banking, Equity Brokerage and Derivatives, Structured Finance and Fixed Income Markets. The Fixed Income Markets division handles all the sales and trading activities of standard and structured market products for corporates, financial institutions and large issuers. Credit Agricole CIB has a network of 31 trading rooms, including five liquidity centers in London, Paris, New York, Hong Kong and Tokyo, providing its clients with a strong positioning in Europe, Asia and the Middle East. It has a targeted presence in the United States and additional entry points in other local markets. In order to best satisfy the specific requirements of its clients, the Fixed Income Markets division is organised into five product lines (foreign exchange, interest rate derivatives, debt and credit markets, commodities and treasury) and one commercial division. These trading and sales entities are supported by dedicated research units. In each of these activities, Credit Agricole CIB ranks among the world's top players. www.ca-cib.com CONTACT: Credit Agricole Corporate and Investment Bank Virginie Ourceyre Global Head of Communications Fixed Income Markets T: + 44 (0) 20 7214 6610 E: [email protected] or Aviva USA Karen Lynn T: + 1 (515) 557-3910 Head of Corporate Affairs, E: [email protected] SOURCE: Aviva USA Copyright Business Wire 2010 Order free Annual Report for Aviva PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB0002162385 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 13, 2010 08:04 ET (12:04 GMT)