Aviva has acquired Irish pensions, life and investment provider Friends First Life Assurance Company for £116m.
Friends First is currently owned by Dutch insurer Achmea Holding and has a 6 per cent market share. The deal makes Aviva one of the biggest composite insurers in Ireland.
The amount Aviva has agreed to pay for the company represents a multiple of 0.8 times Friends First’s adjusted net asset value.
The acquisition needs to be approved by regulators and is expected to complete in the first quarter of 2018.
Aviva International Insurance chief executive Maurice Tulloch says: “Friends First is a natural fit for Aviva Ireland. The acquisition will enhance Aviva Ireland’s product offering and accelerate our international growth agenda. It makes sense financially, strategically and for our customers.”
The strategy stands in contrast to other providers such as Aegon, which recently sold Aegon Ireland to AGER Bermuda Holding, effectively withdrawing its guaranteed drawdown products which were backed by the business.