Aviva said it sold a unit which sells life insurance and investment products in Asia and the Middle East, where it hadn't been profitable. What are the British insurer's plans for Asia?
London-based Aviva said it sold Friends Provident International Limited to RL360 Holding Company Limited, an insurer based on the Isle of Man, for £340 million.
The British insurer said the business is being offloaded following a review to reduce the number of markets and and focus on those where it has either scale and profitability, or a characteristic which distinguishes it from the competition.
The Friends Provident International unit posted a net loss of £2 million last year. Aviva's reversal comes just two years after buying the unit, and less than 12 months after it shuffled its management.
Digital Push
Aviva said it will put the sale proceeds to other businesses where it has stronger market positions and can deliver better returns.
«The sale of Friends Provident International allows us to focus on the significant opportunities we have to grow Aviva’s business across Asia through digital and disrupting the traditional insurance industry,» said Chris Wei, chairman of Aviva Asia and Friends Provident International.
The disposal, expected to conclude early next year, will incur an accounting loss of approximately £130 million on Aviva, because the insurer still holds intangible assets on its balance sheet from when it acquired the unit two years ago.
