U.K. Insurer Aviva To Buy AmerUs For $2.9 Billion

Aviva says the acquisition would increase its U.S. sales by 400% by establishing it in high-growth segments of the U.S. retirement and savings markets.

It would make Aviva a leading player in the U.S. equity-indexed annuity market, where AmerUs is ranked third, with a market share of about 9% in 2005. AmerUs also claims a 50% market share for equity-indexed life insurance policies.

Just before the announcement, AmerUs reported second quarter fixed annuity sales of $625.7 million, down from about $713 million a year earlier. Its sales of life insurance totaled $33.3 million, up from about $31 million a year earlier.

AmerUs Group consists of AmerUs Life Insurance Company, American Investors Life Insurance Company, Indianapolis Life Insurance Company and Bankers Life Insurance Company of New York.

London-based analysts of Standard & Poor's Ratings Services affirmed Aviva's A+ rating following news of the acquisition and revised its outlook on AmerUs to positive from stable.

AmerUs Group has "strong stand-alone fundamentals and healthy growth prospects," the analysts stated.