According to a report by Reuters, Aviva will pull out completely from Indonesia by selling its entire stake in joint venture PT Astra Aviva Life to its partner in the operation.
“The transaction is expected to complete in Q4 2020 and is subject to certain closing conditions,” Aviva said in a statement.
There is no word on how much the sale will raise.
Regulatory approval will be needed in Indonesia, and the completion of Bangkok Bank’s acquisition of Permata Bank, Aviva Indonesia’s bancassurance partner, it said.
The shareholders of Bangkok Bank approved the acquisition of Permata Bank on 5 March 2020, Aviva said.
Aviva began a review of its Asia business in 2019 under new CEO Maurice Tulloch. It said in November that it had decided to keep its Singapore and China operations, but was considering options for its Indonesia, Vietnamese and Hong Kong businesses.
Aviva’s Singapore business has continued to perform well, achieving double-digit growth for the third consecutive year with a 35% year-on-year new business growth for its life business in 2019. Annual Premium Equivalent (APE) rose to S$319m ($231.4m) in 2019 from S$237m in 2018.