March 28, 2024 07:58 GMT
Aviva-AIG Life Deal Cleared: Minor Positive
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UK regulator clears Aviva’s purchase of AIG Life in the UK. Minor credit positive.
- Aviva (AV/ LN) announced the GBP460m acquisition of AIG Life UK in Sep-23 indicating that this helps the group grow its “capital light” growth strategy and would only reduce the group’s Solvency II ratio by c.5pp.
- Aviva’s main EUR credit lines have all tightened in the last month, on the back of both solid results on 7-Mar, a strong run in the equity since and a general tightening of spreads. Aviva’s record with bolt-on acquisitions is relatively good and we can this clearance today as a minor spread positive.
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