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”.
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.
“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.