Aviva streamlines portfolio through series of sales

Aviva has continued its strategy of streamlining its portfolio to counteract a fall in profits faced this year.

The sale of the firm’s entire shareholding in its Hong Kong venture, Aviva Life, to its joint venture partner, Hillhouse Capital, was the fourth transaction Aviva has completed this year.

This was followed in quick succession by the sale of Aviva Vietnam to Manulife for an all cash consideration, a deal that is expected to increase the company’s surplus by £100m.

The “decisive action” resulted from a fall in operating profit of £100m to £1.2bn for H1 2020, leading the firm to switch its focus purely to its “strongest businesses”.

Amanda Blanc, CEO at Aviva, said at the time: “We will focus Aviva on our strongest businesses in the UK, Ireland and Canada and aim to be the UK’s leading insurer. 

“We are going to focus on those businesses where we have the necessary size, capability and brilliant customer service to generate superior shareholder returns.”

She added: “This is where we will invest and grow. Where we cannot meet our strategic objectives, we will take decisive action and we will withdraw capital.”

While the sale of Aviva Life has been completed, the Aviva Vietnam transaction is expected to be finalised in the second half of 2021, subject to regulatory approval.

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