Delta Lloyd suffers after Aviva sells £381m stake

Insurance giant Aviva yesterday said it would receive £381 million from reducing its stake in Dutch peer Delta Lloyd, as one analyst said Aviva may cut the holding even further.

Aviva said it was selling 25 million Delta Lloyd shares at a price of €17.25 (15.37) per share. The British group had previously announced its intention to sell the stake on Monday.

The Delta sale, which is part of Aviva's plans to focus more on its core markets, will cut Aviva's shareholding in the Dutch group from 58 to 43 per cent.

Delta Lloyd shares fell sharply as a result of Aviva's sale.

KBC Securities analyst Dirk Peeters said in a research note: "The sale confirms that Delta Lloyd is no longer a strategic stake to Aviva and that a further sale - and thus share overhang - is possible."

Aviva said the cash proceeds from the sale would "enhance liquidity and further strengthen Aviva's balance sheet".

Chief executive Andrew Moss added: "I'm pleased with the success of this offering, which represents a significant step forward in the delivery of our strategy."

Last month, the group - formerly Norwich Union - reported a 35 per cent rise in full-year profit before tax to 2.44 billion. It said it had delivered a strong life insurance performance in 2010, with long-term savings sales rising by 4 per cent to 37.4bn.