(Alliance News) - Aviva PLC on Monday said it has agreed to sell its entire shareholding in its Vietnam unit to Manulife Financial Asia Ltd - which is part of Canadian insurance firm Manulife Financial Corp - for an undisclosed sum.
The sale of Aviva Vietnam Life Insurance Co Ltd is part of the FTSE 100 life and general insurer's strategy to focus on its strongest businesses in the UK, Ireland and Canada, while reducing its focus in Asia and Europe.
On Thursday last week, Aviva announced the completion of the sale of its Hong Kong joint venture Aviva Life Insurance Co Ltd to its partner Hillhouse Capital Ltd. It had said that disposal was the fourth this year as part of its simplification strategy.
In November, Aviva agreed to the sale of its 80% stake in its Italian joint venture Aviva Vita SpA to UBI Banca SpA for EUR400 million.
Aviva did not disclose the sale price for the Vietnam unit but said the deal will increase its IFRS net asset value and Solvency II surplus by about GBP100 million.
As part of the deal, Manulife will ink a new distribution agreement with Aviva Vietnam's existing bancassurance partner Vietnam Joint Stock Commercial Bank for Industry & Trade.
Subject to regulatory approval, Aviva expects the sale to be completed in the second half of 2021.
Shares in Aviva were up 2.7% at 324.55 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Aviva (AV.)