Insurer Aviva has begun to exit more than a quarter of its businesses by selling half its stake in Dutch rival Delta Lloyd for £318 million.
Aviva sold 37 million Delta Lloyd shares at €10.75 each, it said today, one day after unveiling a programme of disposals and cost cuts aimed at appeasing investors irked by its flagging share price.
"We see this as early evidence of a new determination to re-focus the group on businesses that make a reasonable return," Investec analyst Kevin Ryan wrote in a note.
Aviva acquired Delta Lloyd in 1973 but began offloading its 92 per cent stake via an initial public offering in 2009 after an unsuccessful attempt to challenge corporate governance rules that limited its control over the Dutch insurer.
Aviva's shares have lost about a third of their value in the past year, lagging a 10 per cent decline for the European sector.
The company's weak stock market performance, which led to the removal of Chief Executive Andrew Moss in May, partly reflects concerns over its heavy exposure to the ailing euro zone, source of 40 per cent of its profit last year.
Separately, Aviva’s Irish branch began recruiting for 220 roles at its Galway operation.The jobs were originally announced in May, when the company said it would make between 500 and 540 people redundant from the firm, revising down earlier estimates.
