Aviva's announcement of today has put an end to the wave of speculations on its Polish unit sale: the winner of this race was Allianz, who acquired Aviva's entire shareholding in Aviva Poland for a cash consideration of EUR 2.5 billion, valuing the acquired business at EUR 2.7 billion.

Aviva Poland comprises Aviva's interests in life insurance business in Poland and Lithuania, and its Polish general insurance, asset management and pensions businesses, including a portfolio of financial advice, digital distribution and price comparison businesses. The Aviva Poland business to be sold also includes Aviva's 51% shareholding in life and general insurance joint ventures with Santander (Santander Aviva TUnZ and Santander Aviva TU, respectively).

The acquired business comprises Aviva Poland as defined above, plus Santander's minority shareholding in the life, general insurance and pensions businesses which is also being acquired by Allianz. This excludes the value of Santander's 49% shareholding in the life and general insurance joint ventures, which they will retain.

Aviva will now focus on its strongest businesses in the UK, Ireland and Canada where it has leading market positions and strong growth potential. The divestment of Aviva Poland is the eighth transaction Aviva has announced in the past eight months, and this successfully concludes the planned refocus of the Group's portfolio.

Amanda Blanc, Chief Executive Officer of Aviva, said: "The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate total cash proceeds of GBP 7.5 billion. We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders. Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential."

There will be no impact on customers' policies as a result of this announcement. Customers and distribution partners of Aviva Poland will continue to receive the same high-quality service from the business. The management and employees of Aviva Poland will transfer with the business.

Aviva expects to use the increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders. The transaction is subject to customary closing conditions, including regulatory and anti-trust approvals, and is expected to complete within 12 months.

In 2020, Aviva Poland's IFRS profit after tax was GBP 130 million. The IFRS gross assets and net assets value of Aviva Poland were GBP 3.9 billion and GBP 0.4 billion respectively as at 31 December 2020. Aviva Investors Poland, which manages funds of Aviva Poland, will be part of the transaction. The assets under management of Aviva Investors Poland was GBP 3.7 billion at 31 December 2020 and IFRS profit after tax in 2020 was GBP 4 million.