Asian insurance giant AIA said Wednesday it had completed the takeover of Sri Lankan insurer Aviva NDB Insurance for $109 million, further increasing its presence in Asia.
Hong Kong-listed AIA, which is partly owned by troubled US insurance giant American International Group (AIG), said it bought a 92.3 per cent stake in Aviva NDB from British insurer Aviva and Sri Lanka’s National Development Bank (NDB).
“Sri Lanka is AIA’s 16th market in Asia Pacific and adds further strength to the group’s position as the leading pan-Asian insurer,” the company said in an emailed statement.
AIA, which has also entered into an exclusive 20 year bancassurance agreement with NDB, said its acquisition will be financed by its existing cash resources.
The remaining 7.7 per cent stake in Aviva NDB Insurance represents shares publicly traded on Sri Lanka’s Colombo stock exchange. AIA said it will not make any offers for the remaining shares.
AIA in October announced that the value of its new business in the three months to August 31 grew 22 per cent year-on-year to $300 million, driven by growth in the Singapore, Indonesia and the Philippine markets.
The firm raised $20.5 billion in an initial public offering in 2010.
Hong Kong, Dec 5, 2012 (AFP)
