Aviva applies to consolidate British and Irish businesses

Aviva Insurance has applied to the Commercial Court for permission to consolidate its British and Irish general insurance businesses into one general insurance company.

The transfer will not adversely affect policyholders, the court was told.

Mr Justice Peter Kelly yesterday admitted the proceedings to the Commercial Court list and made directions for the advertisement of the petition in several national and international newspapers and journals prior to the hearing of the petition in early November.

The judge also noted an independent actuary’s report expressed the view the transfer would involve no detriment to policyholders.

Earlier, moving the transfer application, Denis McDonald, counsel for Aviva, said the petition proposed the transfer of the business of Aviva’s Irish company to a British-based Aviva company, Aviva Insurance Ltd (AIL), which would continue to carry on the business in Ireland.

The intention was to consolidate the two separate businesses into one which made commercial sense, he said.

The value of the business being transferred was €1.3bn, Mr McDonald added.

The consolidation of the business is being sought following a resolution of the board of Aviva Insurance Ltd on Jun 29 that the business of Aviva Insurance Europe SE will be transferred to the Irish branch of Aviva Insurance Ltd.

Aviva Insurance Europe has confirmed to the Central Bank here that it will seek to complete the transaction by Nov 30. The scheme is subject to the approval of the Commercial Court.

The petition states the primary commercial purpose of the scheme is to consolidate the British and Irish general insurance businesses of the Aviva group into one general insurance company.

Following completion of the transfer, the business will continue to be carried on in Ireland through a branch of Aviva Insurance Ltd.

The transfer, the petition also states, will allow the Aviva group take advantage of a single lead regulatory reporting regime for its general insurance business in Britain and Ireland and to “streamline prudential reporting requirements”.

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