Aviva said on Friday it will re-enter Asia’s general insurance business with the launch of services in Singapore, one month after rival Prudential bought the Asian unit of AIG.
“Aviva today announced it has re-entered Singapore’s general insurance market and stated its intent on rolling out the business in key markets in Asia,” the company said in a statement. “Starting with direct online car insurance, the company will gradually increase its portfolio of products to include home and travel insurance.”
The group had withdrawn from the Asian general insurance market five years ago, selling its regional non-life insurance business in 2005 to Japan’s Sumitomo Mitsui, but retained its life insurance operations. Aviva, Britain’s second-biggest insurance group after Prudential by stock market capitalisation had stated last month that it would seek growth in Europe, in contrast Prudential which is chasing rapid expansion in Asia.
However, Simon Machell, chief executive of Aviva Asia Pacific, said Friday that Singapore will serve as a launch pad for the group in the region. “Our entry into Singapore marks the first step in our plan to penetrate the rapidly expanding general insurance market in Asia,” Machell said. “The rising affluence of Asian consumers has led to an increasing need to insure their growing assets. Our online model enables us to pass on significant cost savings along with greater convenience and flexibility.”
At the start of March, Prudential agreed to buy AIA, the Asian arm of US insurance giant AIG, for 35.5 billion dollars (26 billion euros) in a takeover that will make it southeast Asia’s biggest insurer. The cash-and-shares deal, which will see the Prudential double its market value, was masterminded by Chief Executive Tidjane Thiam and marks the insurance industry’s biggest ever acquisition.
London, April 9, 2010 (AFP)
