LONDON – Aviva is quitting its Singlife joint venture, selling its 25.9 per cent stake in Singapore Life Holdings and two debt instruments to Sumitomo Life for a combined £800 million (S$1.36 billion), the British insurer said on Wednesday.
The transaction is expected to be completed in the fourth quarter of 2023, Aviva said.
Aviva chief executive officer Amanda Blanc said the transaction “further simplifies the business” and puts the company in “a very strong position to build on our trading momentum in the UK, Ireland and Canada”.
Aviva’s operating profit beat analyst forecasts in the first half of the year, rising 8 per cent to £715 million, helped by a strong performance in general and health insurance.
The Singlife joint venture contributed £17 million to Aviva’s operating profit in 2022, the statement said.
The proceeds from the sale will be considered under Aviva’s capital management framework, the statement said, which allows any surplus capital to be reinvested in the business, used for mergers and acquisitions, or given to shareholders.
Sumitomo Life already has a 23.2 per cent stake in Singlife, the statement said. REUTERS
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