Aviva will sell of at least a third of Dutch firm to raise £1bn

Aviva will today launch an initial public offering (IPO) of its Dutch subsidiary, Delta Lloyd, to raise about £1bn before the end of the year, the FT reports

Aviva chief executive Andrew Moss said the company would sell at least 30% of Delta Lloyd but stay the majority owner.

Aviva is likely to use the funds raised to shore up and restructure its balance sheet in the short term, and then use some in the medium term to fund growth organically and, potentially, through acquisition.

Biggest for 18 months

Morgan Stanley and Goldman Sachs are leading the IPO for Aviva.

The FT said it would be the biggest IPO in Europe for at least 18 months.