Aviva will tide over loss of DBS business, say observers

Singapore

HEAVILY reliant on the bank distribution channel, Aviva Singapore's future growth may seem bleak now that it is left without one, but observers cautioned against writing off the composite insurer too quickly, even as the sector faces headwinds presented by escalating competition.

Observers The Business Times spoke to agreed that the insurer's top line will shrink in the short term and it will be difficult to close the gap left by the bancassurance loss. But they stressed that the impact on the bottom line is dependent on several factors, key of which lies in cutting costs and finding new growth avenues.