Aviva sells US life arm for $1.8bn Aviva has agreed to sell its US life arm for $1.8bn including debt, one of the biggest disposals so far in an effort to shore up its balance sheet. The FTSE 100 insurer has sold Aviva USA to Athene Holding, a company controlled by private equity house Apollo, for a substantial discount to the £3.2bn holding value of the business in its accounts. Aviva shares had fallen 0.65 per cent to 381.5p by early afternoon in London. The UK insurer will receive cash proceeds of $1.55bn from the sale of the business, which carries about $260m of net debt. The division focuses on selling so-called fixed indexed annuities, which offer customers guaranteed returns and as a result require it to set aside significant amounts of capital. Persistently low interest rates have prompted several US life assurers to scale back or sell their annuities operations. This week Sun Life Financial of Canada sold its US business for about $1.35bn in cash to the backers of Guggenheim Partners, which had been holding talks over the Aviva business. Aviva has been trying to boost its financial position under John McFarlane, chairman, and has identified 16 "non-core" businesses. It has sold or agreed to sell four of these - a stake in Delta Lloyd, a joint venture with Bankia, and a business in Sri Lanka - as well as the US. "The sale of Aviva USA is an important step forward in the delivery of our strategic plan," he said in a statement on Friday. It considerably strengthens Aviva's financial position, increases group liquidity and improves our economic capital surplus whilst also reducing its volatility. Aviva acquired the majority of the US business for about £2bn including debt in 2006. It has been seeking to boost profitability by writing less business and lifting prices. Sales fell 17 per cent last year although operating profits rose 13 per cent. Aviva, advised by Goldman Sachs and Morgan Stanley, said the deal was subject to regulatory approval but it expected the transaction to complete next year. The insurer will retain a presence in the US through Aviva Investors, its asset management arm. Separately, Aviva is also to net almost £500m by walking away from its Spanish joint venture with Bankia in a deal agreed earlier this week, ending a legal dispute between it and the nationalised lender.