INSURANCE GIANT Aviva has agreed the €35 million sale of its Russian life and pensions operations, the latest in a string of disposals.
Non-state pension fund Blagosostoyanie is to take on the business, at what Aviva described as a “modest premium” to the IFRS book value.
The sale is one of many to come as part of a major restructure following the departure of former chief executive Andrew Moss last spring after a shareholder rebellion over bonus payments and poor performance.
As part of that plan, the firm now led by new chief executive Mark Wilson planned to sell or scale back 16 underperforming businesses and concentrate on primary markets.
Up to 800 jobs are being cut across the business, which employs around 1,400 people at its base in the Pitheavlis area of Perth, under plans to slash costs by £400 million.
The transaction, which is subject to the approval by Russian authorities, is expected to complete in the first half of this year.
“This transaction builds on the progress we have made to narrow Aviva’s focus,” Mr Wilson said.
