Aviva  

Aviva sells off arm as new CEO takes action

Aviva sells off arm as new CEO takes action

Aviva is set to sell its Vietnam business as the insurer doubles down on its UK, Irish and Canadian markets in the wake of the coronavirus crisis. 

In an update to the market this morning the financial services giant confirmed it had agreed to sell Aviva Vietnam Life Insurance Company Limited to Manulife Financial Asia Limited.

This is the latest sell-off Aviva has conducted as new chief executive Amanda Blanc fulfills her pledge to "focus [the company's] portfolio" and pull back from international markets.

Following her appointment in August, Ms Blanc said Aviva would focus on its larger businesses in the UK, Ireland and Canada. 

In September Aviva confirmed it had agreed to sell a majority shareholding in Aviva Singapore to a consortium led by Singapore Life, in a deal which would see the provider receive £1.6bn split between cash, vendor notes and shares in the new group. 

At the time Ms Blanc said the sale of Aviva Singapore was a "significant first step" in the company's new strategy to bring greater focus to its portfolio.

Covid-19 caused Aviva to experience increased insurance claims, reduced customer activity levels and lower asset values as well as increased money spent on ensuring the company could continue to operate during lockdown.

Despite this, its UK life business, which includes savings and retirement, saw operating profits grow 9 per cent to £817m with net flows increasing 28 per cent to £4.2bn.

rachel.mortimer@ft.com

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