Aviva-CIMB is a joint venture between Aviva International and CIG – a firm ultimately owned by CIMB Group Holdings, one of Malaysia’s leading financial groups and owner of CIMB Bank, one of Malaysia’s largest banks.
In a statement, Aviva said the sale, which has been under discussion since last summer, “represents further progress in narrowing its focus on businesses where it enjoys leadership positions and is able to generate attractive returns with a high probability of success”.
Last week, it was reported that Sun Life was one of two companies in final talks to but the business.
The company announced its strategy to streamline its overseas operations last year, and has since sold a number of business units for example in South Korea.
CIMB-Aviva operates a bancassurance platform offering conventional life, takaful life and takaful general insurance products through its exclusive distribution agreement with CIMB Bank. Aviva has had a 49% shareholding in CIMB-Aviva since forming the joint-venture with CIMB in 2007.
In a related transaction, CIMB has agreed to sell the majority of its interest in CIMB-Aviva to Khazanah Nasional, the government of Malaysia’s investment fund. CIMB will become a minority shareholder and continue its distribution relationship with the company.
It is anticipated that, subject to regulatory approval, the deal will complete in the first half of 2013.
Aviva chief executive Mark Wilson said: “This is a good deal at an attractive valuation. The sale realises a strong return for our shareholders and is a tangible step in our journey towards a more focused, higher performing organisation. Together with the recent disposal of our remaining stake in Delta Lloyd, this has been a satisfactory start to the year.”
