Another day, another sale – that’s how Aviva Plc is rolling these days, with the British insurance giant announcing its latest offloading as part of the group’s ongoing portfolio overhaul.
This time it’s the turn of wholly-owned subsidiary Aviva Vietnam Life Insurance Company Limited to be let go. In an announcement this morning, parent firm Aviva said it is selling the entire shareholding in Aviva Vietnam to Manulife Financial Asia Limited.
Financial terms of the ‘in line with strategy’ all-cash deal were not disclosed. It was, however, noted that the transaction is expected to increase the UK-headquartered insurer’s IFRS (International Financial Reporting Standards) net asset value and Solvency II surplus by approximately £0.1 billion (around SG$178.5 million).
The sale is slated for completion in the second half of next year.
Meanwhile, as part of Manulife’s acquisition, the company will be entering into a new distribution agreement with Vietinbank (Vietnam Joint Stock Commercial Bank for Industry and Trade). The latter is the existing exclusive bancassurance partner of Aviva Vietnam.