Aviva to sell Taiwan business to local partner for $1

Remigio Civitarese
Ottobre 14, 2017

This time the spotlight has fallen on Taiwan, with the company deciding to sell its entire 49% shareholding in First Aviva Life to its joint venture partner First Financial Holding Co.

According to a statement from Aviva, the decision came after a review of the business which found it did not fit with the group's aim of focusing on markets where it can achieve scale or have a distinct competitive advantage.

Chris Wei, executive chairman of Aviva Asia said: "We have refocused Aviva's Asian business on core markets where we have excellent opportunities to grow".

Aviva said that the transaction would have "negligible" impact on its net assets, Solvency II capital position and operating profit. "With our strong partners and our digital focus, we are intent on disrupting the traditional insurance market".

The transaction however remains subject to approval with expected completion in 2018.

Also, the insurer this year sold its stake in three Spanish joint ventures, its Italian joint venture and part of its French business, as it tries to focus on core markets including the United Kingdom and Canada.

Aviva first entered Taiwan in 2007 but considered leaving in 2010 and 2012 when they realised how hard it was to turn a profit in the country's low-rate environment.

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