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Aviva to sell Friends Provident to RL360 for £340m

IBR Staff Writer Published 20 July 2017

Aviva has agreed to divest its pensions business Friends Provident International (FPIL) to RL360 Holding for around £340m.

The insurance giant says that it has come to a conclusion that FPIL is no longer a core business in the group following a strategic review.

FPIL offers life assurance and investment products to customers in Asia, the Middle East and other selected markets. It has offices in Singapore, Hong Kong, the UAE and the Isle of Man.

Through its sale, Aviva wants to focus on a lesser number of markets where it has scale and profitability or a clear competitive advantage.

It will also enable Aviva to reallocate more capital to businesses that can reach leading market positions and bring about superior returns.

Aviva Asia & FPIL executive chairman Chris Wei 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.”

According to Aviva, the transaction will result in a loss on disposal of around £130m. This, Aviva said will be mainly because of the intangible assets held on its balance sheet arising from its £5.6bn acquisition of FPIL in 2015 at a time when it was known as Friends Life.

FPIL’s future owner RL360 is a subsidiary of International Financial Group’s subsidiary and is headquartered in Isle of Man. It is a life assurance company which provides expats and local nationals around the globe with offshore savings, protection and investment products.

Subject to customary regulatory approvals, the FPIL transaction is likely to be completed in early 2018.

Image: Head office of Aviva in St Helen’s, London. Photo: courtesy of Aviva plc.