Aviva sells 49 per cent stake in JV group

Aviva, the British multinational insurance company, has agreed to sell a 49 per cent stake in CIMB Aviva to a subsidiary of Sun Life Financial.

Aviva, the British multinational insurance company, has agreed to sell a 49 per cent stake in CIMB Aviva to a subsidiary of Sun Life Financial.

CIMB-Aviva, which is being sold for £152m cash, is a joint venture between Aviva International Holdings and CIG Berhad, which is ultimately owned by CIMB Group Holdings Berhad, one of Malaysia's leading financial groups and parent of CIMB Bank, one of Malaysia's largest banks.

The purpose of the transaction is to continue with the progress made on narrowing the group's focus on businesses and markets where it has a leading position and is able to generate attractive returns with a high probability of success.

The sale will increase Aviva's pro forma economic capital surplus coverage ratio by around 2.0% to 171% (FY 2011: 130%).

Mark Wilson, Chief Executive Officer of Aviva, 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."

The transaction is dependent upon regulatory approval.

The share price fell 0.3% to 367p by 12:53.

NR

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021