Aviva to part-sell stake in Benelux insurer

Aviva Group chief executive officer Andrew Moss said the decision to part sell the stake – which in total contributed £536m profit to Aviva’s results in 2010- would enable the firm to strengthen its balance sheet: “This is an important step in our strategy.Reducing our shareholding in Delta Lloyd will not only enhance our liquidity and further strengthen our balance sheet, but it is also consistent with our focus on pursuing profitable growth in markets where we have strength and scale.”

Aviva would still have a 43% share in the Netherlands-based insurer following the sale, the insurer added.

Aviva said its decision was consistent with its strategy of focusing on its 12 key markets where it currently has “strength and scale”.

The offering is expected to comprise approximately 25 million Delta Lloyd ordinary shares, subject to investor demand.

This is equivalent to 15.1% of Delta Lloyd’s issued ordinary share capital and 14.0% of Delta Lloyd’s voting rights.

The offer price will be determined by an accelerated book-building process which starts today.

The Delta Lloyd share price has increased by 19% since Delta Lloyd was floated at an offer price of EU16.00 per ordinary share in November 2009.