Aviva to acquire AIG’s UK protection business in £460m deal

Aviva has agreed to acquire the UK protection arm of AIG for £460m, a statement released today (25 September 2023) said.

The unit – known as AIG Life – was formed in 2014 and provides a suite of individual and group protection products.

The acquisition will add 1.3m individual protection customers and 1.4m group protection members to Aviva.

Aviva said AIG Life customers would “benefit from its expertise and financial strength.”

And the insurer felt the deal would accelerate its growth in the UK protection market.

Aviva chief executive Amanda Blanc added: “This acquisition brings significant strategic and financial benefits to Aviva.

“It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.

“We look forward to welcoming our new customers and colleagues to Aviva.”

Distribution

Aviva said it would purchase the unit from Corebridge Financial, a subsidiary of AIG.

The insurer said that adding AIG Life to its portfolio would “create a more efficient platform from which to serve existing and new customers”.

As part of the transaction, Aviva added it will also recapture the economics of the business that AIG Life UK reinsures internally to the wider AIG Group.

“AIG Life UK complements Aviva’s approach with a focus on innovative solutions and strong partnership distribution,” the insurer continued.

“The combined protection business will benefit from AIG Life UK’s successful SME [small and medium sized enterprise] and high net worth propositions and will reach more customers through AIG Life UK’s relationships with regional and corporate IFAs, as well as other key partners.”