Aviva - sponsors of the UK Athletics - has rejected a £5bn bid for its general insurance business after RSA - it's FTSE 100 rival bid for a slice of its sprawling 'composite' business.
With both businesses FTSE 100-listed, RSA formerly Royal Sun Alliance wrote a letter to Aviva asking for a merger/takeover of its general service business with its own, specialised general insurance model - John Napier, Chairman of RSA was said to have proposed the move.
However, as Aviva preferred its 'composite' business model which includes general and life insurance, the bid was immediately rejected although talks may continue over the coming weeks.
General insurance has been in the spotlight recently as Resolution has been leading a spearhead of consolidation in the Life insurance industry by merging Friends Provident with Axa's UK Life insurance business, however it appears a consolidation in general insurance may now also be imminent.
Sky News disclosed the news.
Shares in Aviva closed up on the news Friday at 387.40 (+20.10) up 5.47 pct.