(Sept 25): Aviva plc is buying American International Group Inc’s UK protection business for £460 million (RM2.67 billion) in a deal that would expand the UK insurer’s presence in the local market.

The London-based company will use internal resources to acquire AIG Life Ltd from Corebridge Financial Inc, an AIG subsidiary, according to a statement on Monday. The transaction is expected to close in the first half of 2024.

The purchase “continues our progress in repositioning the group towards capital-light growth,” Aviva Group chief executive officer Amanda Blanc said in the statement.

As part of a strategic overhaul, Aviva has been scaling back its overseas presence, selling assets in markets including Italy and Singapore. The acquisition of the AIG unit will help it reach more customers such as small and medium enterprises and high net worth propositions, according to the statement.

The transaction consideration represents 0.9 times AIG Life UK’s Solvency II own funds, after adjusting for expected capital synergies, according to the statement.