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Aéma finalizes the acquisition of the insurer Aviva France

Aéma group Overview

Aéma Groupe had taken place in January 2021 as a result of the shared ambition of Macif and Aésio Mutuelle to create the first French mutual protection group. Present in all areas of insurance, Aéma Groupe covers 11 million people and thus meets the insurance and service needs of one French person in six.

Its goal is to accompany the men and women who place their trust in it, throughout their lives and whatever their needs, while respecting shared values.

Aéma Groupe is the embodiment of an authentic, open, independent and modern mutualist model that reconciles technical excellence and social usefulness in order to better meet the needs of individuals and professionals, as well as those of small, medium and large companies in the areas of property and casualty insurance, health, personal protection, life insurance and retirement savings.

Aviva plc Overview

Aviva plc is a British multinational insurance company headquartered in London, England. It has about 33 million customers across 16 countries.In the United Kingdom, Aviva is the largest general insurer and a leading life and pensions provider.

Aviva also has a focus on the markets in Europe and in Asia and, in particular, on the growth markets of China and South East Asia. Aviva is also the second largest general insurer in Canada.

Aviva’s main activities are the provision of general and life insurance, long term savings products and fund management services. The group has around 29,600 employees and 33 million customers. Aviva Investors has 289.9 billion assets under management.With more than 11 million policyholders, it has 18,000 employees and generates 14.5 billion euros in revenues in France

Being in the market for nearly 170 years, Aviva is evolving and defying time. Together with its clients, it has written a long history of insurance, protection, savings and retirement products and services

Deal Purpose :

Aéma group, which was created last January from the merger between Macif and Aésio Mutuelle, has just completed the acquisition of Aviva France from its British parent company, after obtaining the approval of the regulatory authorities.

In the first place, Aéma group has entered into exclusive negotiations to buy Aviva France with a view to forming a heavyweight in the French insurance industry, ahead of its rival Covéa.

Through this operation, the demonstration of the ability build a strong and innovative player that meets the growing needs of society as a whole Satisfy the insured needs.

Aéma group will gain influence with public authorities at a time when major issues are on the table: retirement, savings, health and climate change. Because when covering eight million members, policyholders and clients, you are bound to be an influencer.

Deal Outcome & Synergies :

 Aéma Groupe will have 11 billion euros of equity, a level of debt comparable to that of the main players in the market and a solvency ratio of more than 165% which  » measures the good financial health of an insurer and its capacity to face large-scale crises.

  • The deal will allow the group to double its size, with a pro forma turnover of 16 billion euros in premiums. It also considerably strengthens its presence in life insurance, and a powerful association of savers, which has more than 55 billion euros in assets under
  • The new acquisition will enhance the synergies of skills and expertise and the mutual know-how to enrich the group’s offers and services
  • The deal will create a leading French mutual insurance group. Aviva France will now be supported by its 4,500 employees. It will accomplish this while retaining its identity and its specific characteristics, with the same determination to provide increasingly relevant and sustainable insurance solutions to its 3 million
  • Aviva France joining the Aéma group will enhance its diversity and will give new responsibilities vis-à-vis the policyholders, the members and the
  • The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the

Deal Summary :

  Deal Structure :

  • Aviva Plc agreed to sell its French business for 3.2 billion euros ($3.9 billion), financed with equity and through debt
  • The financing of this €3,2 billion acquisition will rely on the group’s equity and the issuance of €1,75 billion subordinated debt :
  • €2,100 million for the acquisition of Aviva France shares;
  • €1,100 million for the redemption of the subordinated debt issued by Aviva France A bridge loan was set up on 24 March, 2021 for the full €3,200 million payment by Credit Suisse and a bank consortium.

–     Aema Groupe and Aviva have agreed to a risk-sharing agreement, in respect to the « known price » contracts. This mecanism would ensure Aema Groupe to keep a total exposure to « known price » contracts at a negligible level in view of the group solvency position.

On September 30, 2021, Aéma groupe completed the acquisition of Aviva France for 3,2 billions euros, after obtaining the necessary authorizations from the regulatory authorities .

 

Sources:

https://aemagroupe.fr/

https://www.aviva.fr/aviva-france.html

https://www.auto-infos.fr/article/feu-vert-au-rachat-d-aviva-france-par-aema-macif.96504

https://www.lanouvellerepublique.fr/niort/niort-la-macif-gagne-la-bataille-du-rachat-d- aviva-pour-3-2-milliards-d-euros

https://www.lanouvellerepublique.fr/niort/niort-il-ne-s-agit-pas-de-grossir-pour-grossir- explique-le-directeur-general-de-la-macif

https://www.businesswire.com/news/home/20210930005554/en/A%C3%A9ma-Groupe- Concludes-the-Acquisition-of-Aviva-France-Becoming-One-of-the-Top-5-French-Insurers

https://www.reuters.com/article/us-aviva-gb-france-idUSKBN2AN0KF

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