Aviva To Sell Stake In South Korean Business Woori Aviva Life Insurance

(RTTNews) - Aviva Plc. (AV.L, AV) Monday said it has reached agreement to sell its entire 47 percent stake in its South Korean business Woori Aviva Life Insurance or WALI to NongHyup Financial Group or NHFG.

WALI is majority owned by Woori Financial Holdings Company Limited, which has also agreed to sell its stake to NHFG as part of this transaction. The agreement is consistent with Aviva's strategy to focus on markets where it has scale or a sustainable competitive advantage to maximize return on capital.

The deal will have a neutral impact on the Group's IFRS net assets and will increase economic capital surplus by 0.2 billion pounds, recognizing the reduced exposure to interest rate and credit risk. The sale of WALI is part of a broader privatization of Woori by the Government of South Korea. Khor Hock Seng, Chief Executive of Aviva Asia, said, "Aviva has a strong presence in China and South East Asia, which are key future cash generators for the group. This deal provides further focus to our Asian businesses, which increased value of new business by 65% in 2013."