Insurer Aviva sells Singapore unit as new CEO shifts focus

By Tanishaa Nadkar and Pushkala Aripaka (Reuters) - Life and general insurer Aviva is offloading its Singapore business to a consortium led by Singapore Life, for S$2.7 billion ($1.98 billion), as the London-listed firm sharpens its focus on Britain, Ireland and Canada.

Reuters September 12, 2020 00:06:48 IST
Insurer Aviva sells Singapore unit as new CEO shifts focus

Insurer Aviva sells Singapore unit as new CEO shifts focus

By Tanishaa Nadkar and Pushkala Aripaka

(Reuters) - Life and general insurer Aviva is offloading its Singapore business to a consortium led by Singapore Life, for S$2.7 billion ($1.98 billion), as the London-listed firm sharpens its focus on Britain, Ireland and Canada.

The British company said on Friday it will sell its majority shareholding in the business to the Singlife consortium, which includes alternative asset firm TPG, Japanese insurer Sumitomo Life and other existing Singlife shareholders.

Promising to shake up the organisation after she took over in July, new CEO Amanda Blanc pledged to reduce its operations in Asia and Europe.

Analysts have said the insurer is operating in too many countries and sectors, and its shares have lagged rivals.

The stock closed 5% higher at 303.2 pence on Friday, as investors welcomed the news.

"The sale of Aviva Singapore is a significant first step in our new strategy to bring greater focus to Aviva's portfolio," said Blanc, who has been looking to pivot Aviva away from Asia, where some global players have struggled with competition.

The deal, one of the biggest in insurance in Southeast Asia, comes at a time when Singlife has been looking to expand in the region.

TPG will become the largest shareholder in the new group, which will initially be branded as Aviva Singlife in Singapore, with a 35% stake. Aviva will retain a 25% equity stake, with another 20% going to Sumitomo.

The rest will be held by other investors in Singlife, which started operations in Singapore in 2017, and has snapped up customers with its digital offerings.

"We believe this constitutes exceptional value creation for the group (Aviva) and represents clear delivery from the new CEO Amanda Blanc on her promise for decisive action," Jefferies analysts said.

The deal also consists of S$2 billion in cash and marketable securities, and S$250 million in vendor finance notes, Aviva said.

($1 = 1.3664 Singapore dollars)

(Reporting by Tanishaa Nadkar and Pushkala Aripaka in Bengaluru, and Anshuman Daga in Singapore; Editing by Sriraj Kalluvila, Shounak Dasgupta and Louise Heavens)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Wall Street Weekahead: Fed meeting looms for stocks as inflation worries collide with 'Goldilocks' markets
Business

Wall Street Weekahead: Fed meeting looms for stocks as inflation worries collide with 'Goldilocks' markets

By Lewis Krauskopf NEW YORK (Reuters) - Investors will be zeroing in on the Federal Reserve’s monetary policy meeting next week as a "Goldilocks" market environment that has helped lift stocks to record highs and tamed a bond selloff is tested by rising inflation.

EU leaders to threaten UK's Johnson with trade war over Northern Ireland - The Times
Business

EU leaders to threaten UK's Johnson with trade war over Northern Ireland - The Times

CARBIS BAY, England (Reuters) - European Union leaders will threaten British Prime Minister Boris Johnson with a trade war over Northern Ireland, The Times reported on Friday, without citing sources. German Chancellor Angela Merkel and French President Emmanuel Macron will use one-to-one meetings with Johnson on Saturday to demand that Britain honours the terms of the Brexit deal in relation to Northern Ireland, The Times reported

Stocks hover near record highs as bond yields slide
Business

Stocks hover near record highs as bond yields slide

By Herbert Lash and Tom Wilson NEW YORK/LONDON (Reuters) -The dollar rose and key U.S., European and global stock indexes hovered near record highs on Friday as investors embraced the easy monetary policies of major central banks and their message that rising inflation will be transitory.