OREANDA-NEWS. Aviva plc (‘Aviva’) announces today that its bancassurance agreement with DBS Bank Ltd will conclude at the end of 2015.

Following the conclusion of the DBS agreement, Aviva will retain the existing book of business, associated profits, and customer rights and relationships which were purchased in the original transaction with DBS in 2001.

In the 12 months ending 31 December 2014, products sold through DBS represented approximately 20% of Aviva Singapore’s value of new business (‘VNB’). The conclusion of the agreement is not material at group level representing less than 3% of Aviva’s total VNB in 2014.

The anticipated acquisition of Friends Life Group adds Friends Provident International to Aviva’s Asian portfolio of companies, expanding its capabilities in the affluent and wealth management segments in Singapore, Hong Kong and Dubai.

Chris Wei, CEO Global Life and Chairman Asia, Aviva plc, said:

“Given the strength of our relationship with DBS, Aviva was well-placed in this process. However, the cost to renew the agreement was far in excess of what we saw as economically viable or justifiable to our shareholders. Aviva remains highly disciplined regarding capital allocation.

“Aviva has an excellent growth franchise in Asia, with a strong network of leading local partners, including COFCO in China, Astra International in Indonesia, First Financial in Taiwan and VietinBank in Vietnam.

“In addition to our valued bancassurance partners, we have a diverse and rapidly evolving distribution platform in Asia, including a growing direct and online capability and a strong financial adviser and agent network, all of which benefit from the strength of the Aviva brand. We look forward to an exciting future in Asia.”