Aviva To Lose GBP1 Billion In US Exit - Report
First Published Sunday, 22nd April 2012 12:16 pm - © 2012 Dow Jones
LONDON -(Dow Jones)- Aviva PLC (AV.LN) is set to pull out of the U.S. in a move that could lose the U.K. insurer GBP1 billion, the Sunday Times reported, without citing sources.
The sale of Aviva USA will be announced later this month and is unlikely to fetch more than GBP1 billion--roughly half the sum Aviva paid for the business in 2006, the newspaper said.
It added that the U.S. exit is part of a strategic overhaul, which also saw three executive departures last week, agreed between Chief Executive Andrew Moss and John McFarlane, the incoming chairman.
Although the sale will result in a heavy loss, it could boost Aviva's capital position in the long run, the report said.
Aviva wasn't immediately available for comment.
Newspaper Web site: http://www.timesonline.co.uk
-By London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320