Steven Wevodau - Insurance Mergers & Acquisitions

Aviva says Dutch joint venture to continue

POSTED BY STEVEN WEVODAU

* Joint venture had 172 mln pounds in sales in Jan-Sept 2008

* Deal to run for remaining 24 yrs of agreed 30-yr term

(Adds detail, background)

LONDON, Jan 8 (Reuters) - Aviva (AV.L), Britain’s biggest insurer, said its joint venture with state-owned ABN AMRO in the Netherlands would continue after the Dutch government reversed a decision by ABN’s previous owner to end the deal.

The Dutch state, which acquired ABN AMRO’s Dutch unit as part of the government rescue of Belgian-Dutch bank Fortis (FOR.BR) late last year, has agreed to maintain the joint venture, Aviva said in a statement on Thursday.

While under Fortis’ ownership, ABN AMRO had said it would exercise its right to buy Aviva out of the venture with a view to merging it with Fortis’ Dutch insurance operations.

Aviva holds 51 percent of the business, known as ABN AMRO Insurance, through its Dutch subsidiary, Delta Lloyd.

ABN AMRO Insurance, which has 1 million customers in the Netherlands, generated 172 million pounds ($259.2 million) in sales for Delta Lloyd in the first nine months of 2008, an increase of 20 percent on the same period a year earlier, Aviva said.

“This is an excellent outcome,” Aviva chief executive Andrew Moss said in a statement.

“The continuation of a newly re-energised joint venture with a leading bank in the Netherlands will enhance Delta Lloyd’s position in bancassurance.”

The joint venture will run for the remaining 24 years of the originally agreed 30 year term, Aviva said. (Reporting by Myles Neligan; Editing by David Holmes)

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