Aviva NDB is a joint venture between Aviva Asia Holdings Private Limited and Sri Lanka’s leading financial group NDB Bank (“NDB”).
John McFarlane, chairman of Aviva plc, said: “The sale of our stake in Aviva NDB is an example of further progress towards narrowing the group’s focus, as we concentrate on fewer business segments where we can produce attractive returns with a high probability of success.”
Aviva has had a majority shareholding in Aviva NDB, formerly Eagle Insurance, since 2006. Aviva NDB has been a pioneer in insurance distribution in Sri Lanka, having been the first insurer there to establish bancassurance distribution and introduce ‘wealth planners’ as part of its service.
Simon Machell, CEO, higher growth markets, added: "The sale price reflects the relative success and growth of the Aviva NDB business. We’re pleased to be selling this business to a strong and committed player in AIA Group, who is well positioned to take the business forward.”
The sale is subject to regulatory approval and is expected to close before the end of 2012.