Aviva plc is exiting Indonesia by selling its entire shareholding in its joint venture PT Astra Aviva Life. The stake will be sold to Aviva's joint venture partner, PT Astra International Tbk.
Aviva did not reveal in its statement how much the sale will raise.
The transaction is expected to complete in Q4 2020 and is subject to certain closing conditions.
These conditions include regulatory approval in Indonesia and the completion of Bangkok Bank Public Company Limited’s acquisition of PT Bank Permata Tbk, Aviva Indonesia’s bancassurance partner. The shareholders of Bangkok Bank approved the acquisition of Permata Bank on 5 March 2020.
Maurice Tulloch, who became Chief Executive Officer of Aviva plc with effect from 4 March 2019, began a review of its business in Asia last year.
In August 2019, reports began to appear that Aviva was mulling the sale of its Asia business. Media reports placed the value of the deal between US$2 billion and $4 billion.
In November 2019, Aviva asserted that after a thorough review, it is retaining its businesses in China and Singapore, while it continues to explore strategic options for its operations in Hong Kong, Vietnam and Indonesia, with its respective partners in each country.
For the 2019 financial year, Aviva Singapore continued to display positive results with a 35% year-on-year new business growth for its life business. Annual Premium Equivalent (APE) rose from S$237 million in 2018, to S$319 million in 2019.
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