Aviva to sell US division for £1bn

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Aviva is preparing to sell its US division at an estimated loss of £800m, according to reports.

The Sunday Telegraph reported that the US arm, which was bought in 2006 for £1.8bn, is likely to be sold for £1bn.

Pat Regan, chief financial officer at Aviva, is undertood to be spending a considerable amount of time at the US business' Iowa headquarters to prepare for a sale and to supervise the process.

The decision to sell up follows a strategy review led by recently appointed chairman John McFarlane.

Mr McFarlane announced at the beginning of July that the insurer would be withdrawing from 16 underperforming business segments in a bid to focus on higher returns.

He said Aviva was to exit the non-core segments that were set to produce returns below the group's required capital, although Aviva USA was not specified as one of the under-performing segments.

Aviva declined to comment for the article.


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