UK-based insurance company Aviva plans to sell all its shares in its Indonesian joint venture PT Astra Aviva Life to PT Astra International, media reports said. PT Astra Aviva Life was established as a joint venture between Aviva and PT Astra International.
It is reported that the deal is subject to regulatory approval and Bangkok Bank’s acquisition of Bank Permata in Indonesia. PT Astra Aviva Life was set up in 2014. In 2018, the company comprised more than 750 employees offering services to more than 1.4 million customers, according to the company website.
The insurance company said in a statement, “The transaction is expected to be completed in quarter four of 2020 and is subject to certain closing conditions, including regulatory approval in Indonesia and the completion of Bangkok Bank Public Company Limited’s [Bangkok Bank] acquisition of PT Bank Permata Tbk [Permata Bank], Aviva Indonesia’s bancassurance partner.”
In 2018, PT Astra Aviva Life had more than 750 employees offering services to over 1.4 million customers. The joint venture in the last quarter of 2019 total assets amounting to Rp 5.9 trillion, with a Rp 900 billion year-on-year growth.
Last year, Aviva reassessed its Asian business under the leadership of new CEO Maurice Tulloch, media reports said. It has decided to retain its Singapore and China operations. However, the company is further exploring opportunities for operations in Indonesia, Vietnam and Hong Kong.
Recently, Aviva renewed its partnership with multinational bank Santander. The partnership will offer life insurance to UK customers until 2026, media reports said.