London-headquartered insurer Aviva has agreed to sell its life insurance business in Vietnam to Manulife.
Aviva Vietnam will be sold for an all cash consideration in a transaction that’s expected to increase the company’s IFRS Net Asset Value and Solvency II surplus by around £100 million.
As part of the deal, Manulife will enter into a new distribution agreement with Aviva Vietnam’s existing exclusive bancassurance partner, Vietnam Joint Stock Commercial Bank for Industry and Trade.
The transaction is subject to certain closing conditions, including regulatory approval, and is expected to complete in the second half of 2021.
Concurrently, it’s been reported by Reuters that the mutual insurer Groupe Macif is increasing its interest in purchasing Aviva’s French arm, in a deal worth about €3 billion.
This follows reports that an Allianz-led consortium is stepping out of the race due to resistance from French unions and local partners.
A spokesperson for Aviva told Reuters that it is indeed exploring options for its European and Asian business, including France, but declined to comment on specific bidders.