Aviva to focus on UK, Ireland and Canada

Aviva has said it is concentrating its geographical efforts on the UK, Ireland and Canada after exiting its joint venture with Singapore Life Holdings (Singlife).

The company announced it has sold its remaining shareholding in the business, along with two debt instruments to Japanese insurer Sumitomo Life, today (13 September 2023).

Aviva’s chief executive officer, Amanda Blanc (pictured), said the decision is in keeping with the corporate strategy to simplify the business and concentrate efforts on building “momentum” in the UK, Ireland and Canada.

The insurer’s decision to end its participation in the joint venture follows the conclusion of the company’s international disposal programme in 2021 as it looks to concentrate instead on business activities which do not require as much capital backing.

In a statement, the company said that the proceeds from the sale will be considered alongside the company’s existing capital management framework, meaning any surprise capital will be available for reinvestment elsewhere in the business, for M&A or for additional shareholder returns.

The total consideration for the transaction is £0.8 billion, including the sale of debt instruments. Aviva was advised by Slaughter and May, the same law firm that advised it on the sale of its majority stake in Aviva Singapore in 2020.

The transaction is subject to customary closing conditions, including regulatory approvals where required, and is expected to complete in Q4 2023.