Aviva has said that its Dutch-based business, Delta Lloyd Group has received notice from ABN Amro in the Netherlands that, as a consequence of the change of control of ABN Amro, it wishes to end their 30-year joint venture bancassurance agreement signed in 2003 covering life and general insurance, and intends to buy out Delta Lloyd's 51% of the venture.
The price to be paid for Delta Lloyd’s share will be determined in the near future, based on the terms of the agreement. This also includes a penalty as ABN Amro chose to terminate the agreement following the change of control.
Delta Lloyd’s share of 2007 life new business premiums and gross general insurance premiums written through the joint venture was GBP183 million and GBP93 million respectively. The joint venture represented less than 1% of Aviva’s life new business premiums and new business contribution in 2007.