Aviva to exit another Asian market as CEO Blanc ramps up restructure

Aviva CEO Amanda Blanc has ramped up its business restructuring plan by disposing of the carrier's entire shareholding in its Vietnamese operation.

The move follows the insurer's recent divestment of its Singapore, Indonesia and Hong Kong businesses, as part of a strategy overhaul planned by its new chief executive Blanc, which includes withdrawing capital from non-profitable areas to enhance its focus on core markets in the UK, Ireland and Canada.

Aviva is to sell its wholly-owned life insurance business in Vietnam, Aviva Vietnam Life Insurance Company, to Manulife Financial Asia for an all cash consideration.

The insurer said this transaction is expected to increase its IFRS Net Asset Value and Solvency II surplus by c.£0.1 billion.

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 (Vietinbank).

The transaction is expected to complete in the second half of 2021.