British insurer Aviva has agreed to offload its Friends Provident International business for £340m to RL360 Holding Company.
Aviva said that the decision for the sale was taken following a strategic review that concluded that the business was “not central to the group’s strategy” and said that the move would help it reallocate capital to return-yielding businesses.
Go deeper with GlobalData
The insurer said it would book a loss of around £130m on the divestiture of Friends Provident, which focuses on clients in the Middle East and Asia.
“In 2016, FPIL made a post-tax loss of £2m and did not remit any cash to Aviva Group. As a result, a disposal of FPIL is expected to be positive to Aviva’s cash dividend paying capacity,” Aviva said.
The deal is anticipated to close in early 2018, subject to regulatory nod.
Aviva Asia and FPIL executive chairman Chris Wei said: “The sale of Friends Provident International Limited is a good outcome for Aviva. It allows us to focus on the significant opportunities we have to grow Aviva’s business across Asia through digital and disrupting the traditional insurance industry.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
