Aviva examining sale of Asian operations: report

August 2 2019 by InsuranceAsia News Staff

Aviva is looking to sell its Asia business for around £1.65 billion (US$2 billion) according to sources cited by Bloomberg and Reuters.

It is understood Aviva is working with an adviser on a possible sale, with a formal process likely to begin in the fourth quarter, the sources said.

Aviva has joint venture operations in China, Hong Kong, India and Indonesia, and wholly-owned operations in Singapore and Vietnam; the insurer posted a 24% increase in operating profit for 2018 to £133 million (US$178 million) last year with Singapore contributing half of the profit.

While Aviva has declined to comment on the speculation, a review of the Asian business is expected to be completed by the end of the third quarter.

Maurice Tulloch was promoted from chief executive of the international division to global chief executive of the insurer in March; he announced a restructuring of the firm’s UK operations in June, with the aim of saving £300 million ($362.8 million) a year.

The insurer will report its first half results on August 8 and will also update the market further at an investor day in November.