Aviva has reportedly
shortlisted potential buyers including Prudential, Manulife, AIA
Group and Sun Life Financial for the sale of a 49% stake in its
insurance joint venture in Malaysia with CIMB Group.
Reuters reported that
these providers have all made it through to the second round of the
auction process. It is said that the process attracted
approximately ten players in the first round.
Go deeper with GlobalData
Binding bids for the
Aviva sale are reportedly due by the end of July 2012, and
management presentations are said to begin next week.
Life Insurance
International contacted Aviva, Manulife, Prudential, Sun Life
Financial and AIA Group to confirm if the media report was
accurate. They all declined to comment on the issue.
A spokesperson for Sun
Life, Financial did say it has a great partnership with CIMB in
Indonesia. The spokesperson said: “Sun Life is focused on growing
our business in Asia, both organically and through
acquisitions.”
The spotlight over
Aviva’s strategy in Malaysia comes at a time when it has announced
plans to ‘streamline’ its operations and exit 16 non-core segments.
For example, Aviva has already announced its intention to exit
Taiwan and South Korea.
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By GlobalDataFocus on Southeast
Asia
Insurers’ interest in
Southeast Asia is logical. According to Swiss Re’s latest sigma
study, although life insurance premiums 10.4% in South and East
Asia fell year-on-year by 10.4% in 2011, they are expected to
rebound in 2012 as insurers in China and India adapt to new
regulations.
ING Group is an example
of the focus on Asia. In May, a spokeswoman for ING Group has said
“it is only natural” that parties are expressing an interest in its
Asian insurance business.
Meanwhile, Prudential is
reported to be considering bidding for the insurance business of
Thailand’s Thanachart Bank in deal said to be valued at
approximately $500m. Speaking to Life Insurance
International in April 2012, a spokesman for
Prudential said the provider would not be commenting on “market
rumours and speculation”.
Aviva’s Asia Pacific
region has 7m customers, across China, Hong Kong, India, Indonesia,
Malaysia, Singapore, South Korea, Sri Lanka, Taiwan and Vietnam;
and contributes 2% of group operating profits.
