Aviva to keep China and Singapore unitsNovember 19 2019 by Andrew Tjaardstra
Aviva has decided to retain its operations in Singapore and China, adding that it would continue to explore options for its other businesses in the region.
The insurer has issued a statement on November 18 in response to media speculation, which included suggestions MS&AD and Manulife were looking to bid for its Singapore unit; the statement said it has decided to retain the operations despite talks with potential buyers.
It is understood the insurer couldn’t attract the right price for the businesses and decided to keep them citing growth opportunities.
The company, however, said it was still looking at strategic options for its operations in Hong Kong, Indonesia and Vietnam. In Hong Kong Aviva has a minority stake in digital only life start-up Blue while it has a 50% stake in a joint partnership in Indonesia.
A spokesperson for Aviva said: “Following a thorough review of options for the Singapore business, including seeking offers for the business, Aviva has concluded that the best value for shareholders will be achieved by retaining the business.”
Aviva also confirmed that its joint venture in China will be retained, given the scale of the market, “excellent relationship with its partner COFCO and the high growth prospects.”
Aviva’s Singapore and China business units delivered double digit operating profit growth in 2018 and are earning attractive returns; both countries are expected to pay dividends to the group in 2019.
India is not part of the UK firm’s review of Asian businesses and is managed separately.
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