Aviva has agreed to acquire Irish insurer Friends First Life Assurance Co for a cash consideration of €130m.
Aviva said that as a result of this acquisition, it would become one of the largest composite insurers in Ireland, with its market share in life insurance increasing to 15%, alongside its existing leading 15% market share in general insurance.
It said the transaction was in line with its strategy to allocate capital in selected markets where it had scale or competitive advantage and where it could further expand its range of products across life and general insurance. It said the consideration represented a multiple of 0.8x Friends First's adjusted net asset value.
Aviva said it expected the transaction to meet the group's operating return on capital hurdle from year one and to significantly exceed the hurdle thereafter. The transaction is subject to regulatory approval and is expected to complete in the first quarter of 2018.
At 8:46am: (LON:AV.) Aviva PLC share price was +2.6p at 493.2p