Finish line in sight for long-awaited FPI sale?

A short line buried within Aviva’s financial results suggests that the sale of Friends Provident International to RL360 is nearing completion after more than two years.

“The transaction is subject to regulatory approvals and is expected to complete in the second half of 2019,” according to the half-year results published on 8 August.

International Adviser reached out to RL360 for further details, with a spokesperson confirming that “work is ongoing”.

The biggest stumbling block to closing the deal has reportedly been the Hong Kong regulator, which IA understands had concerns about the leveraged nature of the acquisition.

Asia shake-up

Aviva chief executive Maurice Tulloch also confirmed that the company will review the strategic options for its businesses in Asia, following speculation that they might be up for sale.

He said that they “have excellent growth and earnings potential and we are considering a range of options to help these businesses reach their potential”.

No details were provided about what those options might be.

Life performance

Tulloch added: “In life insurance and asset management, operating profits declined due to challenging market conditions and the absence of a longevity reserve release.”

Operating profit in the life business dropped 8% to £1.28bn ($1.6bn, €1.4bn), from £1.39bn a year ago.

Asia (excluding FPI) was the only region where new business income rose during the first six months of the year.

The UK was weighed down by lower individual protection volumes, which were partly offset by increased profits in annuities and group protection.

A change in product mix in France resulted in higher sales of lower market saving products, which impacted the European results. Additionally, there was “new business strain” in Ireland following increased volumes, Aviva said.

Improved sales of protection products in Singapore and China, however, boosted results.