Aviva and AIG reach a $563 million deal to purchase AIG's UK protection group.

The UK protection division of AIG will be purchased by British insurer Aviva for £460 million ($563 million), the company said on Monday.

Aviva announced that it will purchase the AIG Life UK operation from Corebridge Financial, an AIG company traded on the New York Stock Exchange.

The transaction, according to Aviva CEO Amanda Blanc, would help the FTSE 100 business position itself for "capital-light growth" and improve its position in a lucrative sector.

According to Aviva, the merger would bring in 1.3 million new customers for individual protection and 1.4 million new members for group protection. Subject to regulatory clearances, the deal is anticipated to be completed in the first half of 2024.

As reported by the business, the agreement would result in a 5 percentage point reduction in Aviva's group solvency II cover ratio.

(Sources: investing.com, reuters.com)