Aviva agrees Indonesia exit

March 9 2020 by Andrew Tjaardstra

Aviva has agreed to sell its entire shareholding in its joint venture in Indonesia, Astra Aviva Life, to Aviva’s joint venture partner, Astra International.

The business had been under review since Aviva’s chief executive Maurice Tulloch decided to only keep its Singapore and China operations in November. It sold its Hong Kong stake to fellow investor Hillhouse Capital while its Vietnam operation is still under review.

The transaction is expected to complete in Q4 2020 and is subject to certain closing conditions, including regulatory approval in Indonesia and the completion of Bangkok Bank’s acquisition of Bank Permata (“Permata Bank”), Aviva Indonesia’s bancassurance partner.

The shareholders of Bangkok Bank approved the acquisition of Permata Bank on March 5.

Operating profit from Aviva Asia’s life and health businesses climbed 5% to £276 million (US$356.6 million) in FY 2019.

Excluding Friends Provident International, which is in run-off, and the Hong Kong operation, which was sold last year to Hillhouse Capital, operating profit increased by 29% to £157 million (US$202.8 million).

Singapore’s profit improved 14% to £145 million (US$187.4 million), as a result of continued growth in Aviva’s financial advisory channel, increased new business volumes and improved profitability in health insurance. Meanwhile, China’s profit improved by 18% to £25 million (US$32.3 million).

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