"An investigation has been launched to assess whether this merger will result in a substantial lessening of competition within any market or markets in the UK for goods or services."
- Competition and Markets Authority
In September 2023, Aviva announced the acquisition of AIG Life UK from Corebridge Financial, Inc. for consideration of £460mn. This transaction is set to build upon the insurer’s strong organic growth, offering high-quality customer propositions and continual improvements to the experience of customers and intermediaries alike. At the time, AIG Life UK provided a full suite of individual and group protection products with 1.3mn individual protection customers and 1.4mn group protection members.
The acquisition has been subject to customary closing conditions, including regulatory approvals since then, with an expected close in the first half of this year.
Commenting on the acquisition, Amanda Blanc, CEO of Aviva, said it brings “significant strategic and financial benefits […] strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the Group towards capital-light growth.”
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Yesterday, the Competition and Markets Authority (CMA) said the merger notice in relation to the anticipated acquisition by Aviva of AIG Life Limited meets the requirements of section 96(2) of the Act. Consequently, an investigation has been launched to assess whether this merger will result in a “substantial lessening of competition within any market or markets in the UK for goods or services.” The CMA will announce whether further investigation is required by the 8th April 2024.
To assist with this assessment, the CMA invites comments on the transition from any interested party before the 22nd February 2024.
“It’s typical for transactions to require regulatory approval and this deal is no different. We continue to expect the transaction to be complete in the first half of 2024 subject to regulatory approvals, and we will provide an update in due course,” said an Aviva spokesperson to various media outlets.
AIG has not yet provided comment.