Insurer Aviva has strengthened its balance sheet by selling its 34 million share stake in Dutch insurer Delta Lloyd via a private placing.
The sale, which took place yesterday, comes as part of the insurer's strategy to narrow its focus, Aviva said.
The group first began offloading its interest in Delta Lloyd in 2009, and raised $494m via a sale of 37m shares last July. Yesterday's sale represented its entire remaining stake.
The placement of the 34,288,795 Delta Lloyd shares owned by Aviva was "several times oversubscribed", the group said, and placed at a 1.6% discount to Delta Lloyd's Tuesday closing price.
"This sale will be a good start to 2013 and supports our strategy to narrow focus and make Aviva a more nimble and athletic organisation. It will further increase Aviva's cash and capital position and is consistent with our focus on businesses where we can earn higher returns," said CEO Mark Wilson.
Aviva said the transaction will increase its economic capital surplus coverage ratio by around 4%, to 169%.
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