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Aviva buys back stakes in Polish insurance joint venture from BZ WBK
September 18, 2014 / 9:27 AM / 3 years ago

Aviva buys back stakes in Polish insurance joint venture from BZ WBK

A man is reflected in a window near the entrance to the AVIVA headquarters building in Dublin October 19, 2011. REUTERS/Cathal McNaughton

WARSAW (Reuters) - Poland’s third largest lender in terms of assets, BZ WBK, said on Thursday Aviva will buy 17 percent of the shares in two joint ventures it has with the bank in the insurance sector.

Last year Aviva and BZ WBK, Santander’s Polish arm, transferred 16 percent of both insurance joint ventures to the bank. This move increased the bank’s net profit by 336 million zlotys (63 million pounds) due to a revaluation of the bank’s stakes.

The bank said in a statement on Thursday Aviva had notified it that it exercised a buy option on 17 percent stakes in BZ WBK-AVIVA TUnZ and BZ WBK-AVIVA TUO.

By 09:19 GMT BZ WBK shares rose by 1.5 percent on the Warsaw stock exchange, while the main bourse index was down 0.3 percent.

Analysts said that most probably Aviva, in executing its buy option, valued the joint venture stakes higher than the bank did it in its books.

“I think that the influence on bank’s profits will be positive, significantly positive, but we need more information to assess it,” DM BOS brokerage banking analyst Michal Sobolewski said.

BZ WBK said it had no immediate comment on the how the transaction would influence its profits.

Reporting by Marcin Goclowski; Editing by Christian Lowe

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