Avivia, the UK insurer, has announced the sale of its Singapore business to its local rival for £1.6bn.
Aviva Singapore will retain a 25% minority share in the business, the company confirmed. The new entity will be known as Aviva Singlife. Singlife will become the largest shareholder in the new company.
According to Aviva, Ray Fergusonwill continue as the chairman of Aviva Singlife. Singlife's group CEO,Walter de Oude,will be deputy chairman and current Aviva Singapore CEO Nishit Majmudarwill be appointed CEO.
We are building something truly inspirational, harnessing the best of financial services for the benefit of Singaporeans and the region."
Amanda Blanc, Aviva's CEO, said the sales is "a significant first step in our new strategy to bring greater focus to Aviva's portfolio. The proceeds from the sale will further strengthen our financial position and enhance our ability to meet our strategic objectives."
De Oude said: "We are building something truly inspirational, harnessing the best of financial services for the benefit of Singaporeans and the region."
Fergusson added: "By joining forces with Aviva Singapore, we are creating a homegrown regional brand that will go far beyond insurance and deliver on these ambitions by creating innovative financial products with intuitive technology and independent advice."
Aviva Singapore's customers and partners will continue to deal with the company as usual and there is no impact to customer policies, the company said.
Other units, including Aviva's businesses in France and Turkey, could be sold in the coming months, according to analysts. Blanc has has said she wants to refocus Aviva's core business in the UK, Ireland and Canada, and less on Asia. The company retains a joint-venture in China and a wholly-owned business in Vietnam.