Citywire printed articles sponsored by:

View the article online at http://citywire.co.uk/new-model-adviser/article/a651650

Aviva sell-off gathers pace as Malaysian venture goes for £152m

by Brian Cantwell on Jan 17, 2013 at 12:03

Aviva’s restructure has gathered pace after the life company followed up the recent sale of its US venture and stake in Dutch provider Delta Lloyd by selling its 49% stake in a Malaysian insurer for £152 million.

In July 2012 then executive chairman John McFarlane announced plans to reduce costs by £400 million by the end of 2013 and said the life company was looking to exit up to 16 underperforming divisions.

In December Aviva sold off its US arm to Athene Holding for around £1 billion, and in January sold a 19% stake in Dutch insurer Delta Lloyd in a deal which could make it £353 million.

The sale of its 49% stake in Malaysian firms CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad, both joint ventures with CIMB Group Holdings Berhad, to Sun Life, will net the provider £152 million.

Mark Wilson (pictured), Aviva chief executive, said: 'The sale realises a strong return for our shareholders and is a tangible step in our journey towards a more focused, higher performing organisation.'