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(Alliance News) - Aviva PLC on Wednesday said it has agreed to sell its quarter ownership of Singapore Life Holdings Pte Ltd to fellow shareholder Sumitomo Life Insurance Co for a total of SGD1.4 billion, about GBP800 million.
The London-based provider of insurance, wealth and retirement products said the exit from the joint venture is part of its effort to simplify its business and focus on the UK, Ireland and Canada. Singapore Life Holdings was formed in 2020 from the merger of Singlife and Aviva Singapore.
Aviva will sell its 25.9% equity stake to Sumitomo Life for SGD900 million, or GBP500 million, and two related debt instruments for SGD500 million, or GBP200 million. Sumitomo already is a 23.2% shareholder in Singlife, so now will have 49.1%.
The stake in Singlife contributed GBP17 million to Aviva operating profit in 2022. This had been GBP2.21 billion in total. The combined carrying value of the equity stake and debt holdings contributed GBP729 million to Aviva's IFRS17 net asset value as of June 30.
The sale is subject to regulatory approval and is expected to be completed in the fourth quarter of 2023.
Aviva shares were up 2.9% at 387.12 pence early Wednesday in London. It has a GBP10.60 billion market capitalisation.
By Tom Waite, Alliance News editor
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