Aviva seeking to consolidate UK and Irish businesses
AVIVA Insurance has applied to the Commercial Court for orders permitting it consolidate its UK and Irish general insurance businesses into one general insurance company.
The transfer will not adversely affect policy holders, the court was told.
Mr Justice Peter Kelly 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 policy holders.
Earlier, moving the transfer application, Denis McDonald SC, for Aviva, said the petition proposed the transfer of the business of Aviva's Irish company to a UK 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 some €1.3 billion, counsel added.
Tha consolidation of the business ie being sought following a resolution of the board of Aviva Insurance Ltd of June 29 last that the business of Aviva Insurance Europe SE (AIESE) will be transferred to the Irish Branch of AIL.
AIESE has confirmed to the Central Bank here that it will seek to complete the transaction by November 30 next. 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 Uk 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 AIL. The transfer, the petition also states, will allow the Aviva group take advantage of a single lead regulatory reporting regime for its UK and Ireland general insurance business and to "streamline prudential reporting requirements".