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
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
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 Soli...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.