Aviva may have to invest around €400 million in Novacaixagalicia, its joint venture with Spanish bank, Bancaja, Financial Times reports. The U.K. insurance group may also get a similar sum to quit its venture with the bank, if Spanish insurer, Mapfre, buys its bancassurance business.
Novacaixagalicia is seeking to raise around €2.6 billion in fresh capital. Aviva will have to make some investment to maintain its position, but it has compensation agreements in place for pay-outs for any deals that ended.
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