Aviva to sell Taiwan business to local partner for $1 (updated)

First Financial Holding

13/10/2017 10:35

(Adds price tag, company comments, background, share price) 
    LONDON, Oct 13 (Reuters) - British insurer Aviva  AV.L  said 
on Friday its decision to sell its 49 percent stake in a Taiwan 
joint venture to its partner First Financial Holding  2892.TW  
fits into its strategy of withdrawing from less profitable 
markets. 
    Aviva declined to put a price tag on the sale, but Annie 
Lee, head of investor relations at Taiwan's First Financial 
 2892.TW , said Aviva sold its share in the joint venture, First 
Aviva Life, for $1.  
    The sale enables Aviva to withdraw its capital from the 
business, following low returns after the financial crisis, she 
added. 
    The decision came after a review of the business found it 
did not fit with the group's aim of focusing on markets where it 
can achieve scale or have a distinct competitive advantage, 
Aviva said in a statement. 
    "This was not about financials, it was more a strategic 
decision," an Aviva spokeswoman said. 
    The insurer has also this year sold its stake in three 
Spanish joint ventures, its Italian joint venture and part of 
its French business, as it tries to focus on core markets 
including Britain and Canada. 
    It has also said it would look at its Indian joint venture 
with Dabur Invest Corp  DABU.NS .  urn:newsml:reuters.com:*:nL8N1JA3HC 
    The sale of the Taiwan business will have a negligible 
impact on Aviva's capital position and operating profit, the 
insurer said.  
    Aviva previously looked at exiting Taiwan in 2010 and 2012, 
but opted not to in the face of opposition from regulators.  
    Aviva's shares were trading at 499.4 pence at 0841 GMT, down 
0.1 percent. 
 
 (Reporting by Clara Denina and Carolyn Cohn; Editing by Rachel 
Armstrong and Adrian Croft) 
 ((Clara.Denina@thomsonreuters.com;)) 
 
Keywords: AVIVA TAIWAN/DIVESTITURE