Aviva to sell Vietnam life unit as Asia retreat continues

Aviva has agreed to sell its life insurance business in Vietnam to Manulife in the UK company's latest move to retreat from Asia.

FTSE 100 insurer said Manulife Financial Asia would pay an undisclosed cash sum for Aviva Vietnam. Aviva said the sale would increase its net asset value and solvency II surplus by about £0.1bn.

"As part of the transaction, Manulife will enter into a new distribution agreement with Aviva Vietnam's existing exclusive bancassurance partner, Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)," Aviva said.

Chief Executive Amanda Blanc is stripping back Aviva's operations in Europe and Asia to concentrate on the UK, Ireland and Canada. The company has announced the sales of its Singapore business and its stake in Aviva Vita in Italy for a total of £2bn in the past three months.

The sale of Aviva Vietnam is expected to complete in the second half of 2021.