London headquartered insurer Aviva has revealed that following a comprehensive review of options for its Singapore business, it has decided to retain the operation.
Over the past couple of months, reports in the media have claimed that a number of companies, including the likes of Allianz, MS&AD, Nippon Life and HSBC, were exploring a potential bid for some of Aviva’s Asia operations.
In light of the recent media speculation, Aviva has put out a statement on its Asian operations. Firstly, the insurer has said that after the completion of a thorough review of its Singapore business, which included seeking offers for the operation, it has determined that the best value for shareholders will be achieved by retaining the business.
Furthermore, the company’s joint venture in China will also be retained, in light of the scale of the market and the firm’s “excellent relationship” with its partner COFCO, as well as high growth prospects.
In 2018, both Aviva’s Singapore and China divisions produced double-digit operating profit growth and are earning attractive returns. Aviva states that both countries are expected to pay dividends to group centre in 2019.
Regarding Aviva’s other Asian operations, which includes Hong Kong, Vietnam and Indonesia, the firm says that it continues to explore strategic options with its respective partners in each country.
