Aviva’s H1 Asia profits up 37% as board reviews options

August 8 2019 by Andrew Tjaardstra

Pre-tax profits in the first half of the year at Aviva’s Asia operations increased by 37% to £66 million (US$85 million) compared with £47 million (US$65 million) in the first half of last year.

The company was boosted by particular good results in Singapore and China as it focused on its multi-distribution strategy.

Aviva has joint venture operations in China, Hong Kong, India and Indonesia, and wholly-owned operations in Singapore and Vietnam.

However the Asia businesses could be sold as the firm’s new global chief executive Maurice Tulloch looks to make his mark and focus on other parts of the business.

Tulloch said: “Since my appointment, I have worked closely with the board on refreshing Aviva’s strategy. This work is progressing well and we will summarise our strategy, objectives and operational and financial targets at our capital markets day in November.”

“In conjunction with this process, we have decided to examine strategic options for our Asian businesses. These businesses have made significant progress in recent years, expanding distribution and new business production, increasing their in-force scale and growing operating profit. Our Asian operations are strategically and financially attractive, however, we are evaluating a range of options to enhance the value of the businesses to shareholders.”

Aviva saw a rise in operating profit last year in Asia by 24% to £133 million (US$178 million), with Singapore contributing half of the profit.

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