Aviva to sell U.S. Life Unit
On a conference call today, Aviva CFO, Pat Regan confirmed what we already know which is that the sale of Aviva’s U.S. Life division would be at a “substantial discount” to the unit’s book value of $3.8 billion. They paid $2.9 billion for AmerUS Group alone in 2006. In August, they wrote down the value of the of the US company as 786 million pounds as they prepared it for being sold. They are expecting to fetch just over a billion dollars for the division.
Sales were down 5 percent in the first nine months of the year.
We have known for a while that many hedge funds are interested in the unit including Apollo Global Management LLC (current owner of Athene Holdings), Harbinger Capital Partners (owner of Fidelity and Guaranty) and Guggenheim Partners LLC (owner of Equitrust, Security Benefits and others).
We will continue to watch this story to see who ends up being the new owner of Aviva.