A report in the Financial Times says that Aviva is considering the sale of its U.S. unit, a major player in the indexed annuity business.
The FT article was based on comments from investment managers at a meeting with Aviva chief executive Andrew Moss during which he reportedly said the company would consider offers for the U.S. division. Analysts have also speculated on the possible disposition of the U.S. unit.
In an email statement to LifeHealthPro.com this morning, a spokesperson for Aviva USA said, “It’s our company policy not to comment on speculation.”
In a memo to the company’s distribution partners, Aviva USA president and CEO Chris Littlefield addressed the report. “As a global organization, Aviva reviews its strategy and portfolio of businesses on a regular basis. Nevertheless, Aviva USA remains part of Aviva and the U.S. remains one of the 12 priority markets for the group. Obviously things can change and CEOs have an obligation to consider offers that make sense for the company’s shareholders. However, if there is ever a decision to sell the U.S. business, you will hear it from us directly rather than just read about it in the paper,” he wrote.
See also: Aviva Memo to Agents
While sales of annuities overall increased on 2011, sales of indexed annuities and fixed annuities were either flat or down slightly, according to LIMRA.