U.K.’s Aviva plc in talks to acquire U.S. life insurer

Aviva plc, the U.K-based financial services company, and Iowa-based life insurer AmerUs Group Co. both confirmed speculation they are in talks that could lead to Aviva’s acquisition of AmerUs, according to A.M. Best.
“Further to recent speculation, Aviva plc confirms it is in discussions with AmerUs Group Co., which may or may not lead to the acquisition of AmerUs,” A.M. Best quotes Aviva (LSE:AV.) as saying in a statement filed with the London Stock Exchange.
In a public statement, Aviva said the discussions are consistent with its strategy of “pursuing value-creating acquisition opportunities in key growth segments of the major global long-term savings markets.”
In its own statement, AmerUs (NYSE:AMH) confirms the talks are ongoing, but adds it won’t comment further until talks are finished.
According to A.M. Best company reports, as of Mar. 31, 2006, AmerUs had total assets of US$24.7 billion and shareholders equity of US$1.7 billion. AmerUs Group provides fixed life insurance, ranking in the top 20 nationally in fixed annuity sales.
For its part, Aviva had just recently begun writing life insurance business through a new subsidiary in Russia, according to A.M. Best. In April, the group obtained a regional license for a life insurance joint venture in China.
“Aviva, which says it is the world’s sixth-largest insurance group based on gross premiums, has shown an aggressive global growth strategy in recent years,” A.M. Best notes. “Aviva recently abandoned a 17-billion (US$29.6-billion) takeover bid for rival U.K. insurer Prudential plc.
“In turn, both Aviva and Prudential (LSE:PUK) are seen by U.K. equity analysts as potential takeover targets by companies such as U.K. financial services group HSBC Holdings plc (LSE:HSBA), Canada’s Manulife Financial Corp. (NYSE:MFC) and Axa (NYSE:AXA) of France.