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Aviva is selling off Friends Provident for £340m

Insurer Aviva has announced has agreed to dispose of Friends Provident International to RL360 Holding Company as it looks to continue its expansion into Asia.

The deal, which is for a total consideration of £340m, comes after the insurer completed a strategic review which deemed that the business did not fit with its plan to focus its efforts on a small handful markets where it currently has a competitive advantage.

According to Aviva, the sale will allow it to reallocate and channel funds to its various businesses which can be positioned as market leaders, and allow it to continue its push into digital and disruptive technologies.

London-headquartered Friends Provident, which made a £2m loss last year, has been around in some form since the 1830s, so its disposal as part of a modernising and innovation push would make sense.

Chris Wei, Executive Chairman, Aviva Asia & FPIL, said: “The sale of Friends Provident International Limited is a good outcome for Aviva. It allows us to focus on the significant opportunities we have to grow Aviva’s business across Asia through digital and disrupting the traditional insurance industry.”

The transaction is subject to customary regulatory approvals and is expected to complete in early 2018.

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