Aviva PLC (LON:AV.) has decided against selling off its businesses in China and Singapore, sending its share lower.
Following a review of its Asian businesses, the FTSE 100 life insurer said on Monday that it was still looking at options for its businesses in Hong Kong, Vietnam and Indonesia but had decided that retaining its business in Singapore will achieve “the best value for shareholders”.
Aviva will also be maintaining its joint venture in China with the state-backed China National Cereals, Oils and Foodstuffs Corporation, citing the scale of the market and “high growth prospects”.
“Aviva's Singapore and China business units delivered double digit operating profit growth in 2018 and are earning attractive returns. Both countries are expected to pay dividends to group centre in 2019,” the company said.
Aviva revealed in August that it was mulling several possibilities for its Asian operations, including a possible sale.
This followed a mixed set of first-half results which saw profits from its core life insurance arm decline 8% to £1.3bn while those from general insurance were up 29% to £391mln.
The news drove the shares 3.5% lower to 419.4p in early deals.