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Aviva restructures into 5 divisions, sells Hong Kong stake to Hillhouse Capital
[LONDON] British insurer Aviva has simplified its business into five operating divisions following a review and is selling its stake in its Hong Kong business to co-investor Hillhouse Capital, it said on Wednesday ahead of a presentation to investors.
The life and general insurer is struggling to find direction, analysts and investors say, after replacing its chief executive earlier this year.
Aviva said it was dividing its businesses into investments, savings and retirement; UK life; Europe life; Asia life, and general insurance.
"I am committed to running Aviva better," said chief executive Maurice Tulloch, who took over the top job in March.
"We will be more commercially focused, manage costs rigorously and be more disciplined in how we invest."
Aviva set out several three-year targets, including a 12 per cent return on equity and a £300 million (S$527.1 million) net cost saving by 2022.
It said it was committed to its progressive dividend policy and saw 2019 operating profit in line with management expectations, following around £300-400 million in management actions.
Aviva said it was in discussions about the future of its businesses in Vietnam and Indonesia, following the sale of its stake to Hillhouse in the Hong Kong business, named Blue.
Tencent Holdings, China's biggest gaming and social media company, also has a stake in Blue.
Aviva said this week it was keeping its Singapore operation following a review of its Asian businesses, raising speculation it could not get a satisfactory price for it. The insurer also said it was keeping its joint venture in China.