The move adheres to Aviva’s strategy to focus on its UK, Ireland and Canada markets
Aviva has confirmed that it has agreed to sell the entire shareholding of its wholly-owned life insurance business in Vietnam - Aviva Vietnam Life Insurance Company Limited – to protection business Manulife Financial Asia Limited for an all cash consideration.
As part of the deal, which is expected to boost Aviva’s International Financial Reporting Standards (IFRS) net asset value and solvency II surplus by around £0.1 bn, Manulife will enter into a new distribution agreement with Aviva Vietnam’s existing exclusive bancassurance partner, Vietnam Joint Stock Commercial Bank for Industry and Trade.
The transaction is subject to certain closing conditions, including regulatory approval.
It is expected to complete in the second half of 2021.
This move aligns with Aviva’s overarching strategy to focus on its strongest businesses in the UK, Ireland and Canada, which Aviva defines as its core markets.
In September, Aviva sold the majority of its Singapore business to a consortium for £1.6bn, while the sale of Aviva Vita Italy is expected to complete in Q2 2021.