ABN AMRO cancels buy out after Fortis nationalisation

Aviva has said its subsidiary Delta Lloyd’s joint venture with state-owned ABN AMRO in the Netherlands would continue after the Dutch government reversed a decision by ABN's previous owner to end the deal.

The Dutch state owns ABN AMRO's Dutch unit as part of the rescue of Belgian-Dutch bank Fortis, which had said it would buy out Aviva’s 51%.

The business has one million customers in the Netherlands and generated £172m in sales for Delta Lloyd in the first nine months of 2008, an increase of 20% on the same period a year earlier, Aviva said.

Niek Hoek, CEO of Delta Lloyd Group said: "The continuation of the joint venture fits in excellently with our strategy as a leading insurer to serve our customers through all distribution channels. In the past years we have shown we can make this joint venture a success for customers, employees and shareholders and we will now prove that once more."

Andrew Moss, group chief executive of Aviva, said: "This is an excellent outcome.”