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Aviva restructure sees £152m Malaysian stake ditched

Aviva restructure sees £152m Malaysian stake ditched

Aviva is selling its 49% stake in a Malaysian joint venture to Sun Life Assurance Company of Canada for £152 million, marking the latest move under the new chief executive to streamline the business.

The sale of CIMB-Aviva, which comprises CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad, comes shortly after the group sold its stake in Delta Lloyd Group for £350 million at the start of the year.

The disposals come at the start of new chief executive Mark Wilson’s tenure, who has said he aims to make Aviva a more nimble organisation.

Aviva said the latest transaction represents ‘further progress in narrowing the group’s focus on businesses and markets’ where it can generate returns with a ‘high probability of success.’

It added the transaction will increase Aviva’s capital surplus coverage ratio by around 2% to 171%.

CIMB-Aviva operates one of Malaysia’s largest bancassurance platforms, offering insurance products through its exclusive distribution agreement with CIMB Bank.

Aviva has had a 49% shareholding in CIMB-Aviva since forming the joint-venture with CIMB in 2007.

In another, related transaction, CIMB has agreed to sell the majority of its interest in CIMB-Aviva to Khazanah Nasional Berhad, the Government of Malaysia’s strategic investment fund. CIMB will become a minority shareholder and continue its distribution relationship with the company.

Wilson said: ‘This is a good deal at an attractive valuation. The sale realises a strong return for our shareholders and is a tangible step in our journey towards a more focused, higher performing organisation.

‘Together with the recent disposal of our remaining stake in Delta Lloyd, this has been a satisfactory start to the year.’

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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