Shares in Aviva (LON:AV) have been little changed in London this morning, as the company announced that it is exiting its business in Taiwan. The move is part of a string of recent deals by the blue-chip insurer which continues with its transformation under chief executive Mark Wilson.
As of 08:51 BST, Aviva’s share price had lost 0.18 percent to 499.10p, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.38 percent lower at 7,527.71 points. The group’s shares have added more than 12 percent to their value over the past year, and are up by more than two percent in the year-to-date.
Aviva announced in a statement this morning that it had agreed to sell its entire 49-percent shareholding in its joint venture in Taiwan, First Aviva Life, to its joint venture partner First Financial Holding. The move followed a strategic review of the operation, with the FTSE 100 giant concluding that the business was not central to the group’s strategy to focus on markets where it can achieve scale and profitability or have a distinct competitive advantage.
The move comes after Aviva recently inked a deal to acquire a majority stake in a low-cost ‘robo’ investment service. The group also recently disclosed that it had sold its shareholding in an Italian joint venture to Banco BPM, having also recently wrapped up the sale of parts of its Spanish business.
Analysts on Aviva
The 18 analysts offering 12-month price targets for Aviva for the Financial Times have a median target of 565.00p on the shares, with a high estimate of 640.00p and a low estimate of 420.00p. As of October 6, 2017, the consensus forecast amongst 21 polled investment analysts covering the blue-chip insurer has it that the company will outperform the market.