Proactive Investors - Run By Investors For Investors

Aviva to sell Taiwan business to joint venture partner First Financial

Aviva said a review of its Tawain business found that it was not central to the group’s strategy
Aviva is streamlining its business to focus on its core markets

Insurance giant Aviva PLC (LON:AV.) has agreed to sell its 49% stake in its Taiwan business to its joint venture partner First Financial Holdings for an undisclosed amount, enabling it to focus on its core markets in Britain and Canada. 

The company said a strategic review of the Taiwan joint venture found that it was “not central to the group’s strategy to focus on markets where it can achieve scale and profitability or have a distinct competitive advantage”.

READ: Aviva sells stake in Italian joint venture to Banco BPM

The disposal of the business will have a negligible impact on Aviva’s net assets, capital position and operating profit.

The transaction is subject to regulatory approval and is expected to be completed in 2018.

"We have refocused Aviva's Asian business on core markets where we have excellent opportunities to grow,” said Chris Wei, executive chairman of Aviva Asia and global chairman of Aviva Digital.  

READ: Aviva lifts dividend 13% after first half profits rise on growth across UK and Europe

“With our strong partners and our digital focus, we are intent on disrupting the traditional insurance market."

The group had previously considered exiting Taiwan in 2010 and 2012, but decided against the move due to opposition from regulators.

Aviva has also sold its stake its Italian joint venture, part of its French business and its holding in three Spanish joint ventures this year as it turns its attention to more profitable markets. 

View full AV. profile View Profile

Aviva plc Timeline

Related Articles

calculator to denote financial figures
August 31 2017
Powering that momentum was Legal & General Nederland, renamed Sclidon and bought earlier this year for £137.5mln

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use