Aviva (LON:AV) has acquired VietinBank's entire 50-percent shareholding in its life insurance joint venture in Vietnam, the blue-chip insurer has said. The move comes with the company having unveiled plans this year to shake up its business as part of chief executive Mark Wilson’s transformation strategy.
Aviva’s share price has inched higher in London in today’s session having gained 0.17 percent to 507.37p as of 09:56 BST, largely in line with gains in the broader market, with the benchmark FTSE 100 index currently 0.05 percent better off at 7,122.04 points. The group’s shares have added more than 14 percent over the past year, and are up by some four percent in the year-to-date.
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.
The move, which is intended to simplify Aviva’s operating structure in the region, comes after the blue-chip insurer unveiled an organisational overhaul earlier this year, saying that it was bringing its UK insurance businesses together. Aviva Investors, Aviva Asia and the Digital businesses, however, are set to remain separate entities.
The 18 analysts offering 12-month price targets for Aviva for the Financial Times have a median target of 550.00p on the shares, with a high estimate of 608.00p and a low estimate of 420.00p. As of April 19, the consensus forecast amongst 21 polled investment analysts covering the blue-chip group has it that the company will outperform the market.