UK-based global life and general insurer Aviva has disposed of its Turkish general insurance (GI) business, Aviva Sigorta, to a private equity consortium led by EMF Capital Partners (EMF).
The disposal of GI is a part of Aviva’s strategy to reduce the group’s focus on businesses where it has a leadership position and can generate attractive returns.
However, Aviva’s life and pensions business in Turkey, AvivaSA, is unaffected by this transaction. AvivaSA is a leading life and pensions provider in Turkey and is an important growth business for the group.
The transaction, which is expected to conclude during the first half of 2014, is pending receipt of relevant regulatory approvals.
In November 2013, Aviva embarked on a conditional agreement to divest its entire 39% stake in Eurovita Assicurazioni, to New York-based private equity firm JC Flowers, in a cash transaction valued at approximately €33m.
The British insurance group said that the transaction will enable it to focus its Italian business on more profitable, capital efficient products. The proceeds from the sale would be used for general corporate purposes.