Aviva is selling its Russian life and pensions arm to a non-state pension fund in Russia for a cash sum of £30.2m.
The deal between Aviva Russia and Blagosostoyanie is expected to complete in the first half of the year, subject to approval by the Federal Antimonopoly Service of the Russian Federation.
Aviva Russia was established in 2005 to focus on the life and pensions market. Blagosostoyanie has been operating in Russia for over 17 years and is one of the country’s largest non-state pension funds.
Blagosostoyanie’s core activities include non-state pension coverage and compulsory pension insurance. Its total assets are €6.5bn (£5.6bn) as at September 2012, including €4.2bn of pension reserves and €1.9bn of pension savings. The company has over 2.8 million customers.
Aviva chief executive Mark Wilson says: “We are pleased to have agreed the sale of our life and pensions operations in Russia to Blagosostoyanie. This transaction builds on the progress we have made to narrow Aviva’s focus.”