British insurance company Aviva Holding Ltd. has announced its exit from Indonesia, selling all its shares in its joint venture in the country, PT Astra Aviva Life (Astra Life), to its partner, PT Astra International.
Aviva released the statement on the company’s website on Friday.
“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,” the statement said.
The shareholders of Bangkok Bank approved the acquisition of Permata Bank on March 5.
Bangkok Bank announced in December that it had agreed to buy 89.1 percent of stakes in publicly listed Bank Permata from Standard Chartered and Astra International for around US$2.67 billion as part of its overseas expansion.
British financial giant Standard Chartered and Indonesian diversified conglomerate PT Astra International were the majority owners of Bank Permata shares, each owning 44.56 percent.
Astra Life was established on May 26, 2014, and by 2018 it had over 750 employees and provided services to over 1.4 million customers, according to information on the company’s website.
The company had total assets amounting to Rp 5.9 trillion (US$407 million) in the fourth quarter of 2019, a Rp 900 billion year-on-year growth, according to its financial statement.
Aviva began a review of its Asia business in 2019 under new CEO Maurice Tulloch, Reuters reported.
The company said in November that it had decided to keep its Singapore and China operations, but was considering options for its Indonesia, Vietnamese and Hong Kong businesses.
Source: The Jakarta Post | 9 March 2020