International Insurance News: Sri Lanka Aviva Insurance unit sold to AIA group

Control of Sri Lanka’s Aviva NDB Insurance and a fund management unit is being bought by AIA Group, for 109 million US dollars, with joint venture partner, Colombo based NDB group, also exiting.

Aviva said 58.44 percent of Aviva NDB Holdings Lanka (Private) Limited, an unlisted firm will be sold to American International Assurance Company, Limited, a subsidiary of AIA Group Limited.

The firm effectively controls about 51 percent of Aviva NDB Insurance, a listed insurer, where the other key shareholder is Sri Lanka’s NDB Bank group.

“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,” John McFarlane, chairman of Aviva plc said in a statement.

Aviva NDB Insurance had been trading around 430 rupees a share in Colombo valuing it around the price paid by AIA group.

“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,” statement.

NDB group said it is selling a 41 percent stake in the unlisted firm, a 5 percent direct state in Aviva NDB Insurance and a Aviva NDB Wealth Management to AIA for 59 million US dollars.

Separately Aviva NDB Insurance said in a Colombo Stock Exchange filing that AIA will pay 109 million US dollars for control of the insurer and its fund management unit.

After change of ownership the new firm will be re-named as AIA, the statement said.

http://www.lankabusinessonline.com/fullstory.php?nid=620937449