U.K. insurer Aviva, as a plan to restructure the firm, has decided to sell its stake in its Italian life insurance joint venture- Aviva Vita- to its partner UBI Banca for around 400 million Euros ($475 Million).
According to a statement on Monday, the insurer will be selling 80% of its holding, leaving it with three insurance businesses in Italy, an attempt to increase shareholder value.
Chief Executive Officer Amanda Blanc had made an announcement in August saying Aviva would focus on its operations in the U.K., Canada, and Ireland, making room for the successful units to perform more efficiently.
The sale of Aviva Vita is essential for progress of the firm and in the reshaping of its portfolio, she added.
By market value, Aviva Plc is the second-largest London-listed insurer, and under Amanda Blanc, the insurer is thriving by following the “less is more” concept. The firm sold its Singapore unit two months ago and is planning a potential sale for its French unit as well.
Aviva’s decisions can turn out beneficial for investment bankers and shareholders alike who have seen acquisitions fall 23%, all in a year.