- Insurance company Aviva said it had agreed to sell its entire 80% stake in the Italian life insurance joint venture, Aviva Vita, to its partner UBI Banca for €400 million.

The transaction, expected to close in the first half of 2021, represented a multiple of 8.4 times Aviva Vita's 2019 IFRS net profit, and 1.2 times its net asset value as at 30 June 2020.

A subordinated loan of €40 million provided by Aviva to Aviva Vita would be repaid in full at completion.

'The transaction would increase Aviva's net asset value as at 30 June 2020 by £0.12 billion, strengthen Aviva's Solvency II capital surplus by £0.22 billion and increase its Solvency II coverage ratio on a shareholder basis by approximately 4 percentage points,' Aviva said.

'The transaction represented another important strategic milestone as Aviva delivers on its commitment to refocus its portfolio,' it added.

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