Aviva Sells U.S. Life Business to Apollo for $1.8 Billion

[nathan.lee]

Big news in the U.S. Annuity and Life insurance industry. Athene Holding Ltd. has announced that is plans to purchase Aviva’s U.S. Annuity and Life business. Aviva announced the sale of its U.S. operations several months ago and since that time speculation has swirled around which companies might be in a position to purchase the business. The sale of Aviva USA to Athene is expected to close in 2013, subject to customary regulatory approvals. The new entity will be renamed Athene USA and will remain headquartered in West Des Moines, IA. The purchase price is reportedly $1.8 billion and will generate $1.55 billion in cash for Aviva. Click here to read the full press release on Bloomberg.

 

[ScottLFB]

It's official.. I bet their new rating either drops to B++ or Liberty and Presidential bump up to A-

 

[WPM]

Doesn't Aviva own some IMO's? I wonder how that will play out?

 

[scagnt83]

So now Athene holdings is going to have two different competing annuity companies?? (Athene Annuity & Athene USA) ?

Does that make good sense from a corporate standpoint? Anyone else think that the new Athene USA is going to be life focused and not annuity focused?

 

[hammerken]

They will probably blow out the IMOs. Also I believe they are consolidating their operations in Des Moines and going by the moniker Athene USA. Looking to maybe get out of Life Biz as well. It should be interesting. I write a lot of Aviva and have looked at Athene recently. Agressive move but good value I would think based on the discount.

 

[NickH]

Look for Athene to sell off the Aviva "life" side. i believe the now makes them #2 in the annuity market place. i find it kind of funny to see a company that has the highest rates in the market buy out the company that has the lowest rates in the market.

I also look for them to scrap the Annexus line (not a fan of anyway)