On Aviva, Six Years Later – The Aleph Blog

Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control

Posted on 5 July 2012 by David Merkel

I note this article about Aviva plc.? I took grief from Amerus Group’s IR department during the merger six years ago for my commentary at RealMoney.? Here is an example of my writing that theStreet,com made public.? Thanks, TSCM.

Like many foreign acquirers of US life insurers, the bids were too aggressive, and Aviva paid far too much for Amerus Group.? Overpaying for US life companies, particularly for newcomers to the US is not uncommon; Old Mutual did even worse with F&G Life back in 2001.? (And if you like, look at the amount of capital they pumped in, before selling it to Harbinger Group for a 90% loss. Ouch, Ouch, OUCH!!!)

So Aviva is not the worst, but has done badly.? Would that they had listened to intelligent advisors, instead of destroying value via the Amerus purchase.? The price is down 60%+ since then.

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