nab-buys-aviva-businesses-in-australia

NAB buys Aviva businesses in Australia

Aviva realises $737 million from the sale of its insurance and wealth management businesses and says it intends to enhance focus on the rest of Asia, while NAB consolidates in its home market.

National Australia Bank NAB will buy Aviva's life and pensions business as well as its wealth management platform in Australia -- collectively named Aviva Australia -- for A$925 million $737 million.

The total acquisition cost is split into an A$825 million cash component a A$40 million dividend that Aviva Australia will pay before the deal closes and an estimated A$60 million which is a net asset adjustment to be paid post completion. Aviva said the price it has realised represents 16 times net earnings in 2008.

The cash consideration of A$825 million represents a price-to-embedded value of 1.1 times, based on Aviva's embedded value of A$734 million as of December 31,...

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