Aviva (AV.) is to keep its operations in Singapore and China, after a strategic review of its Asian businesses concluded that shareholders would be better off with the divisions retained, which boasted double-digit operating profit growth in 2018.
The financial services giant made the decision after seeking offers for its Singaporean arm. Its joint venture in China will remain in place, “given the scale of the market, excellent relationship with its partner COFCO and the high growth prospects”. However, Aviva continues to consider options for its businesses in Hong Kong, Vietnam and Indonesia.
The review was one of the first major commitments by recently-installed Aviva chief executive Maurice Tulloch, who provided few details when he announced the move alongside interim results in August.
Aviva’s disclosure also comes ahead of its capital markets day on 20 November, and was prompted by a Bloomberg report that several candidates were poised to bid for the Singapore and Vietnam divisions, in a deal potentially worth $3bn (£2.3bn). News of the restricted review appeared to dash investors’ hopes for a cash wind-fall, as the market knocked four per cent off the share price.
