Aviva has agreed to sell the entire shareholding in its wholly-owned life insurance business in Vietnam, Aviva Vietnam Life Insurance Company, to Manulife Financial Asia for an all cash consideration.
The transaction is expected to increase Aviva's IFRS Net Asset Value and Solvency II surplus by £100m.
As part of the transaction, Manulife will enter into a new distribution agreement with Aviva Vietnam's existing exclusive bancassurance partner, Vietnam Joint Stock Commercial Bank for Industry and Trade.
We share an ambition to accelerate digital transformation to make lives better for millions of people across Vietnam."
The sale is subject to certain closing conditions, including regulatory approval, and is expected to complete in the second half of 2021.
In line with the global insurer's announced strategy of re-focusing on its core markets, the planned sale follows the recent sale of Aviva's majority stake in its Singapore business.
Roy Gori, CEO of Manulife, said: "We are extremely pleased to enter into partnership with VietinBank, Vietnam's leading bank. We share an ambition to accelerate digital transformation to make lives better for millions of people across Vietnam.
"This partnership increases our market share leadership in Vietnam and capitalizes on our strong position as one of the leading international life insurers in Asia, further progressing our growth trajectory in the region."