Aviva share price on the up
JV acquisition has a positive impact on insurer
by Abi Moses on 22nd April, 2017
Aviva's acquisition of VietinBank's entire 50-percent shareholding in a life insurance JV has had a positive impact on the firm, with the business excited to 'shake things up' going forward. This year, chief executive, Mark Wilson, is said to implement a transformation strategy, with the blue-chip insurer expected to enjoy further positivises over the coming months.
Following the news , the Aviva share price rose 0.17 percent to 507.37p, inline with the wider market and contributing to the strong FTSE index last week.
While great news for the insurance giant, it is not the first time this year shares have shown positive movements, having increased 14% in 2017.
Confirming details of the acquisition, Invezz reports:
'Aviva announced in a statement today that it had acquired VietinBank’s entire 50-percent shareholding in its life insurance joint venture VietinBank Aviva Life Insurance Limited. As a result of the transaction, Aviva Vietnam is now a wholly owned subsidiary of the FTSE 100 group, with a key focus on growing the business across all key distribution channels.'
In a plea to overhaul Aviva’s operating structure in the region, we can expect more big announcements over the coming months 'bringing its UK insurance businesses together'.
While very much focusing on Aviva as a whole brand, the company have said that they will keep Aviva Investors, Aviva Asia and the Digital businesses as separate entities.
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