Aviva U.S. unit fetches $800 million more than deal price

Wed Oct 2, 2013 6:33pm EDT

A man walks past an AVIVA logo outside the company's head office in the city of London March 5, 2009. REUTERS/Stephen Hird

A man walks past an AVIVA logo outside the company's head office in the city of London March 5, 2009.

Credit: Reuters/Stephen Hird

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(Reuters) - British insurance group Aviva Plc (AV.L) on Tuesday said the sale of its U.S. life and annuities business to Athene Holding Ltd had fetched $2.6 billion, above the $1.8 billion price announced in December.

The additional $800 million represented estimated earnings and other improvements in statutory surplus from June 30, 2012 to September 30, 2013, the company said.

Cash proceeds to Aviva totaled $2.3 billion, following the repayment of an external loan of Aviva USA Corp.

The insurer in December 2012 said it had agreed on a deal to sell its U.S. operations to Athene Holding, an insurance holding company majority owned by private equity firm Apollo.

(Reporting by Karen Rebelo in Bangalore)

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