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Member, Beacon International Group, Ltd.
LONDON--U.K. insurer Aviva P.L.C. has agreed to sell its insurance businesses in Asia for £249 million ($442.0 million) in cash to Japan's second-largest nonlife insurer, Mitsui Sumitomo Insurance Co. Ltd.
Aviva's nonlife insurance operations, which collectively generated gross premiums of £173 million ($308.7 million) and produced net profits of £21 million ($37.5 million) in 2003, will transfer to Tokyo-based Mitsui during the end of 2004 and beginning of 2005.
According to Richard Harvey, group chief executive of London-based Aviva, the insurer plans to refocus on life insurance products in the region. Mitsui will run the acquired Aviva operations under their current structures, separate from its existing nonlife operations.
The units affected include the nonlife insurance business of Aviva Ltd. and the nonlife insurance assets of Aviva Asia Pte. Ltd., both based in Singapore; Aviva Insurance Berhad in Kuala Lumpur, Malaysia, including its branch in Brunei; and Aviva Insurance (Thai) Co. Ltd. in Bangkok, Thailand.
P.T. Aviva Insurance in Jakarta, Indonesia; Dah Sing General Insurance Co. Ltd. in Hong Kong; and Aviva's branch operations in Hong Kong, Macau, the Marianas Islands, the Philippines and Taiwan will also go to Mitsui.