Aviva PLC, the U.K.’s largest insurer, plans to buy AmerUs Group Co. in a deal that would significantly boost its presence in the U.S. life and annuity markets.
Under the agreement, valued at about $2.9 billion, Aviva would acquire AmerUs, Des Moines, for $69 a share in cash and assume about $700 million in AmerUs debt.
AmerUs reported having $24.7 billion of total assets at the end of March, while at year-end 2005, Aviva reported worldwide assets of $583 billion.
Both companies’ boards of directors have approved the acquisition, according to an announcement on July 13 by AmerUs.
The agreement would merge AmerUs with Aviva USA, Boston. The combined company would be headquartered in Des Moines under Thomas Godlasky, CEO of AmerUs.
Aviva USA distributes a variety of life and annuity products through 5,500 independent agents and brokers as well as through several U.S. banks.