Aviva to keep hold of Singapore, China businesses

Aviva said on Monday that it will retain its operations in Singapore and China after reports indicated that the former of the businesses could be slated for disposal.

Bloomberg had cited people familiar with the matter as it reported that MS&AD Insurance Group Holdings Inc and Canada's Manulife Financial Corp were close to completing purchases of the insurer's operations in Singapore and Vietnam.

Aviva confirmed that it had sought bid for the Singapore business following a thorough review of its options, but added that it now believed holding on to the subsidiary would ensure the best value for shareholders.

The Chinese joint-venture will also be retained due to the scale of the market, excellent relationship with its partner COFCO and high growth prospects.

The company said: "Aviva's Singapore and China business units delivered double digit operating profit growth in 2018 and are earning attractive returns. Both countries are expected to pay dividends to group centre in 2019."

The FTSE 250-listed company added that it continues to explore strategic options for its operations in Hong Kong, Vietnam and Indonesia.

Aviva shares were down 4.60% at 414.40p at 1108 GMT.