September 25, 2019 Several big-name insurance groups such as Allianz, Nippon Life, and MS&AD Insurance are reportedly in the running to acquire Aviva’s Singapore and Vietnam businesses for a price tag that could reach US$2.5 billion.
Around half a dozen potential buyers are angling for the deal, including Canadian heavyweight Sun Life, according to a Reuters report, which cited people with knowledge of the matter. The sources declined to be identified due to the confidential nature of the deal.
The combined value of the Vietnam and Singapore operations is estimated at around US$2 billion up to US$2.5 billion, the sources said, adding that the deal is still in its early stages and the terms may change as talks go on.
Allianz, Aviva, MS&AD, Nippon Life, and Sun Life declined to comment, the report said.
Read more: HSBC eyeing up Aviva Asia operations – reports
The rapid economic growth in Asia, coupled with low insurance penetration, make it desirable for many global insurance companies, but many are finding it hard to keep up with the tough competition presented by the region’s larger players.
According to the sources, Aviva accepted the first round of bids last week, and the British insurance group aims to finalise a deal by the end of this year.
Aviva currently fully owns its Singapore and Vietnam businesses, with Singapore bringing in almost half of its operating profits in the region. It is also present in mainland China, Hong Kong, India, and Indonesia, but these markets are unlikely to be included in this deal.
This article and content was reproduced from Insurance Business Mag. By GABRIEL OLANO