Aviva has completed the sale of its troublesome US business for $800 million (£494 million) more than expected.
The FTSE 100 insurer said it offloaded the unit to Athene Holding, a company owned by private-equity firm Apollo, for £2.6 billion.
The deal was higher than the $1.8 billion agreed between the two parties last year because of higher estimated earnings at the business and stronger equity markets.
Mark Wilson, chief executive, said: “The sale of the US business is another milestone for Aviva: it simplifies the business, strengthens the capital position and is a step towards our goal of creating a business focused on cash flow and growth.”
The deal will boost Aviva’s coffers by $2.3 billion and helped shares in the company rise by more than 3% to 420p, a 28% jump over the past year.
Athene Holding beat off rival approaches from interested parties such as Harbinger Capital and Guggenheim Partners.
Aviva, which appointed Wilson as its chief executive last November, is looking to sell underperforming divisions as it slims its structure.
The company has cut staff, sold businesses and overhauled others since parting ways with former boss Andrew Moss last May.
