Four potential buyers, including Prudential Plc, Manulife, AIA Group Ltd and Sun Life Financial Inc have also been short-listed in an auction process (that attracted about 10 suitors in the first round) and have made it through to a second stage of bidding for UK insurer Aviva’s insurance business in Malaysia in a deal worth about US$500 million (RM1.6 billion).The hunt for the Aviva stake underscores the industry’s focus on growth opportunities in emerging Asian markets, where life insurance premiums are forecast to double the world average, according to a Swiss Re forecast.
Aviva, Britain’s second-ranked insurer, is selling its 49 per cent stake in an insurance joint venture with Malaysia’s second-biggest lender CIMB Group Holdings Ltd as part of a global retreat.
The joint venture has struggled to compete against rivals such as Great Eastern and Prudential, and a new partnership could re-shape the competitive landscape in Malaysia.
Potential buyers are attracted by CIMB’s 320 branches across the country and the ability to sell insurance products to the bank’s customers. Also, CIMB could sell a significant portion of its 51 per cent stake, allowing a new owner to control the business.
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