Aviva agrees Friends Life takeover

UK insurance giant Aviva has agreed the terms of its six billion euro takeover of rival insurer Friends Life.

The move will create the UK’s largest insurance, savings and asset management firm.

The deal offers a 15 percent premium to Friends Life closing price on the London Stock Exchange on November 20.

Aviva said it expected the combined insurer powerhouse to generate 600million euros in excess cash a year and deliver around 250 million euros in annual cost savings by the end of 2017.

Friends Life, like other UK annuity providers, has faced an uncertain future since the UK governments radical overhaul of the pensions market.