Aviva is quitting its Singlife joint venture, selling its 25.9% stake in Singapore Life Holdings and two debt instruments pounds to Sumitomo Life for a combined £800m, the insurer said today.
The transaction is expected to be completed in the fourth quarter of 2023, Aviva said.
Aviva CEO Amanda Blanc said the transaction "further simplifies the business" and put the company in "a very strong position to build on our trading momentum in the UK, Ireland and Canada."
Aviva's operating profit beat analyst forecasts in the first half of the year, rising 8% to £715m, helped by a strong performance in general and health insurance.
The Singlife joint venture contributed £17m to Aviva's operating profit in 2022, the statement said.
The proceeds from the sale will be considered under Aviva's capital management framework, the statement said, which allows any surplus capital to be reinvested in the business, used for mergers and acquisitions, or given to shareholders.
Sumitomo Life already has a 23.2% stake in Singlife, the statement added.
