Aviva continues revamp with £31m sale

Aviva has continued with its string of disposals by announcing it has agreed to sell its controlling 58.44% interest in Aviva NDB Holdings Lanka for £31 million.

Aviva NDB is a joint venture between Aviva Asia Holdings Private Limited and Sri Lanka's leading financial group NDB Bank.  Aviva told investors it had struck the deal with American International Assurance Company, a subsidiary of AIA Group.

John McFarlane, chairman of Aviva plc, said that the sale marked 'further progress' towards narrowing the group's focus as it concentrated on fewer business segments.

It has held the majority shareholding in Aviva NDB, formerly Eagle Insurance, since 2006.

Simon Machell, chief executive officer, of Aviva's higher growth markets, added: 'The sale price reflects the relative success and growth of the Aviva NDB business. We're pleased to be selling this business to a strong and committed player in AIA Group, who is well positioned to take the business forward.'

The sale is subject to regulatory approval and is expected to close before the end of 2012.  It follows Aviva giving consideration to the sale of its US arm for £1 billion.