SOURCE: Aviva PLC

January 17, 2013 05:32 ET

Aviva Announces Sale of Malaysian Joint Venture

LONDON--(Marketwire - Jan 17, 2013) -




17 January, 2013

              Sale of stake in Malaysian joint venture

Aviva plc ("Aviva") announces that it has reached agreement to sell its
49% interest in CIMB Aviva Assurance Berhad and CIMB Aviva Takaful
Berhad (together "CIMB-Aviva") to Sun Life Assurance Company of Canada
("SLA"), a subsidiary of Sun Life Financial Inc. ("Sun Life"), for a
consideration of GBP152 million[1] payable in cash.

CIMB-Aviva is a joint venture between Aviva International Holdings
Limited and CIG Berhad, which is ultimately owned by CIMB Group
Holdings Berhad ("CIMB"), one of Malaysia's leading financial groups
and parent of CIMB Bank, one of Malaysia's largest banks.

The transaction represents further progress in narrowing the group's
focus on businesses and markets where Aviva enjoys leadership positions
and is able to generate attractive returns with a high probability of
success. The transaction will increase Aviva's pro forma economic
capital surplus coverage ratio by approximately 2% to 171%[2] (FY11:
130%). The proposed transaction values CIMB-Aviva at 2.4x 1H 2012
embedded value[3].

CIMB-Aviva operates one of Malaysia's leading bancassurance platforms
offering conventional Life, Takaful Life and Takaful General insurance
products through its exclusive distribution agreement with CIMB Bank.
Aviva has had a 49% shareholding in CIMB-Aviva since forming the
joint-venture with CIMB in 2007. In a related transaction, CIMB has
agreed to sell the majority of its interest in CIMB-Aviva to Khazanah
Nasional Berhad ("Khazanah"), the Government of Malaysia's strategic
investment fund. CIMB will become a minority shareholder and continue
its distribution relationship with the company.

The agreement reached by the parties, and the sale, are subject to
regulatory approval and execution of appropriate legal
documentation.Upon receipt of the aforesaid regulatory approval, the
parties will work to close the proposed transaction during the first
half 2013.

Mark Wilson, Chief Executive Officer of Aviva plc, said:"This is a good
deal at an attractive valuation. The sale realises a
strong return for our shareholders and is a tangible step in our
journey towards a more focused, higher performing organisation.
Together with the recent disposal of our remaining stake in Delta
Lloyd, this has been a satisfactory start to the year."

Enquiries:

Media

Nigel Prideaux  +44 (0)20 7662 0215
Andrew Reid     +44 (0)20 7662 3131

Analysts

Charles Barrows  +44 (0)20 7662 8115
David Elliot     +44 (0)20 7662 8048


Notes to editors:

* Aviva provides 43 million customers with insurance, savings and
investment products.

* We are the UK's largest insurer and one of Europe's leading
providers of life and general insurance.

* We combine strong life insurance, general insurance and asset
management businesses under one powerful brand.

* We are committed to serving our customers well in order to build
a stronger, sustainable business, which makes a positive contribution
to society, and for which our people are proud to work.

* The Aviva media centre at  www.aviva.com/mediaincludes  images,
company and product information and a news release archive.

* For broadcast-standard video, please visit  http://www.aviva.com/media/video/ .

* Follow us on twitter:  www.twitter.com/avivaplc 



[1]GBP/CAD FX rate of 1.5829

[2]Based on the estimated economic capital position as at 30 September
   2012, including pro forma adjustments for the impact of the
   transfer of Aseval to Bankia, announced on 18 December 2012, the
   sale of Aviva USA,announced on 21 December 2012, and the sale of
   Aviva's remaining stake in Delta Lloyd, announced on 8 January 2013.
   The term "economic capital" does not imply capital as required by
   regulators or other third parties.

[3]Embedded value quoted on a market-consistent basis in line with Aviva
   plc group reporting.

                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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