The sale of the stake to a subsidiary of Astra International marks the exit of the British insurance group from Indonesia
Aviva exits Indonesia by selling stake in Astra Aviva Life. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine / Wikipedia.org)
Aviva has wrapped up the sale of its 50% stake in Indonesian subsidiary Astra Aviva Life to Sedaya Multi Investama, a subsidiary of its joint venture (JV) partner, Astra International.
The financial terms of the deal were not disclosed.
The deal, which was signed in March 2020, marks the exit of the British insurance group from Indonesia.
Astra Aviva Life was created in 2014 by Aviva and Astra International, which is an Indonesian conglomerate. The Indonesian life insurance joint venture has been serving individual and corporate customers with a variety of protection and investment products.
The company offers life insurance, health insurance, accidental insurance, life insurance linked to investment, and sharia life insurance among others for individual customers.
For corporate customers, the company offers employee welfare programmes and pension funds.
Aviva has been stating that it wants to focus on the UK, Ireland, and Canada where it has top positions in the market and also considerable potential. The insurance group intends to invest for growth in the three markets.
It also revealed that its international businesses in Europe and Asia will be managed for delivering long-term shareholder value.
In September 2020, Aviva signed a deal to divest its majority stake in its Singaporean subsidiary to a consortium led by Singapore Life (Singlife) for SGD2.7bn ($2.01bn).
The transaction will result in the subsequent merger between Aviva Singapore and Singlife to create an enlarged entity, which will operate initially as Aviva Singlife.