Aviva to exit Indonesian market in Asia overhaul

British insurer Aviva his selling its entire shareholding in its joint venture in Indonesia, PT Astra Aviva Life, to its partner PT Astra International. The deal will mark Aviva's exit from the country.

Aviva's new CEO Maurice Tulloch began a 'strategic review' of its Asian business in 2019 to re-energise it with a fresh growth strategy. While announcing its 2019 results on March 5, Tulloch said that he "will take robust action across the portfolio where our performance falls short or where we can see a better way of delivering value to our shareholders".

The transaction is expected to complete in the fourth quarter of 2020. It is subject to regulatory approval in Indonesia and certain closing conditions, including the completion of Bangkok Bank Public Company's acquisition of PT Bank Permata Tbk, Aviva Indonesia’s bancassurance partner.

The shareholders of Bangkok Bank approved the acquisition of Permata Bank on March 5.

Earlier in June 2019, Aviva announced that is expecting approximately 1,800 role reductions across the group over the next three years as part of its efforts to reduce expenses by £300 million per annum by 2022.