Welcome!

News Feed Item

Aviva Reaches Settlement with Bankia

LONDON -- (Marketwire) -- 12/19/12 --






18 December 2012





      AVIVA REACHES SETTLEMENT WITH BANKIA FOR EUR608 MILLION


* Aviva and Bankia agree settlement regarding their Spanish joint
  venture Aseval

* Agreement to terminate legal proceedings between Aviva and Bankia

* As a result, Aviva will transfer its entire holding in Aseval to
  Bankia

* Transaction will increase Aviva's economic capital surplus by
  approximately GBP0.5 billion[1]


Aviva plc ("Aviva") announces that it has reached a settlement with
Bankia S.A ("Bankia") by which Aviva will transfer its entire holding
in Spanish joint venture Aseval[2] to Bankia for EUR608 million (GBP494
million) in cash, which will be held in escrow. The transfer of Aseval
shares to Bankia is subject to customary regulatory approvals and
release of the cash proceeds to Aviva is expected no later than 30
April 2013.

As a result of the settlement, Aviva and Bankia have applied to the
Arbitration Court in Madrid[3], Spain, to terminate the legal
proceedings between the parties and issue an award which reflects the
settlement agreed.

Cash proceeds will increase Aviva's central group liquidity by EUR608
million (GBP494 million) and be used for general corporate purposes. The
transaction will increase Aviva's economic capital surplus by #
approximately GBP0.5 billion, IGD capital surplus by approximately GBP0.
4billion and IFRS net assets by approximately GBP0.2 billion. The
consideration represents approximately 1.8 times Aseval's IFRS net
asset value[4]. In 2011, Aseval contributed IFRS life operating profit
of GBP88m, of which Aviva's share was 50%.

John McFarlane, chairman of Aviva, said:"This settlement is in line with
our strategy to increase Aviva's
financial strength and we have realised significant value from our
joint venture with Bankia. We remain focused on providing excellent
service to our customers in Spain, through our other bank partners and
distribution agencies."

Aviva's other operations in Spain are unaffected by the settlement.
Aviva will continue to serve over 1.2 million customers in Spain
through bancassurance partnerships with NCG Banco, BMN, Caja Espana
Duero and Unicaja, as well as agency distribution units Aviva Vida y
Pensiones and Pelayo Vida.

Aviva Spain generated sales of GBP1,926 million[5] and an IFRS life
operating profit of GBP216 million in 2011, of which Aseval contributed
sales of GBP393 million and an IFRS life operating profit of GBP88 milli
on[6]. Aseval contributed GBP267 million to group IFRS net assets
(including goodwill of GBP194 million) and GBP2,618 million to group
IFRS total assets as at 30 June 2012.


-ENDS-

Enquiries:

Media

Nigel Prideaux +44 (0)20 7662 0215
Andrew Reid +44 (0)20 7662 3131


Analysts

Charles Barrows +44 (0)20 7662 8115



Notes to editors:

* Total cash proceeds converted to sterling at an exchange rate of
  EUR1/GBP0.81.

* Reported income and expense figures are converted at average
  exchange rates of EUR1/GBP0.87 for year-end 2011 and EUR1/GBP0.82 for
  the 6 months to 30 June 2012. Assets and liabilities are converted at
  closing rates of EUR1/GBP0.84 for year-end 2011 and EUR1/GBP0.81 at
  30 June 2012.

* The settlement will result in Aseval being deconsolidated from
  Aviva's IFRS accounts. Had the transfer of Aviva's holding in Aseval
  to Bankia occurred at 30 June 2012, Aviva's IFRS net assets would
  have increased by GBP0.2 billion, equivalent to 8p per share, and
  MCEV net assets including goodwill would have increased by GBP0.1
  billion, equivalent to 5p per share.

* Had the transfer of Aviva's holding in Aseval to Bankia occurred
  at 30 June 2012, the accounting gain in the income statement on sale
  would have been GBP265 million.

* In 2000, Aviva acquired a 50% stake in Aseval from Bancaja which
  became a joint venture under Aviva's management control. Aseval
  established an exclusive agreement with Bancaja to distribute life
  insurance and pension products.

* In March 2011, Bancaja agreed to consolidate its banking
  business with Caja Madrid[7] and five other Spanish savings banks,
  which resulted in the formation of Bankia in May 2011. The arbitration
  was initiated by Aviva in June 2011 on the basis that Bancaja had
  breached the terms of its shareholder agreement with Aviva.

* Aviva is the fifth-largest life and pensions provider in Spain.

* Aviva has been advised on the arbitration process by the Madrid
  office of the international law firm Ashurst.



About Aviva

* Aviva provides 43 million customers with insurance, savings and
  investment products.

* We are the UK's largest insurer and one of Europe's leading
  providers of life and general insurance.

* We combine strong life insurance, general insurance and asset
  management businesses under one powerful brand.

* We are committed to serving our customers well in order to build
  a stronger, sustainable business, which makes a positive contribution
  to society, and for which our people are proud to work.

* The Aviva media centre at www.aviva.com/media includes images,
  company and product information and a news release archive.

* For broadcast-standard video, please visit http://www.aviva.com/
  media/video/.

* Follow us on twitter: www.twitter.com/avivaplc



[1]The economic capital surplus represents an estimated position as at
   30 September 2012, based on Aviva's own internal assessments and
   capital management policies. The term "economic capital" does not
   imply capital as required by regulators or other third parties

[2]Aseval Aseguradora Valenciana, Sociedad Anonima de Seguros y
   Reaseguros

[3]Corte de Arbitraje de la Camara Oficial de Comercio e Industria de
   Madrid

[4]As at 30 June 2012

[5]On a PVNBP basis including non controlling interests

[6]IFRS life operating profit is before tax and includes non
    controlling interests

[7]Caja de Ahorros y Monte de Piedad de Madrid

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...