Aviva sells majority stake in Sri Lankan JV

The reshaping of Aviva under Executive Chairman John McFarlane continues apace, with the insurance titan announcing the sale of its controlling interest in its Sri Lankan joint venture, Aviva NDB Holdings Lanka.

American International Assurance, a subsidiary of AIA Group, is buying Aviva's 58.44% in the joint venture (JV) for a consideration of £31m payable in cash. The minority partner in the JV is Sri Lankan financial group NDB Bank.

"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," McFarlane said.

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Simon Machell, boss of Aviva's higher growth markets division, added: "The sale price reflects the relative success and growth of the Aviva NDB business."

JH