Aviva continues sell-off with Turkey exit

Aviva has taken another step toward refocusing on the UK, Ireland and Canada by selling off its stake in a Turkish joint venture, the insurance giant announced on Wednesday.

Ageas Insurance International will pay £122 million in cash for Aviva’s 40% stake in AvivaSA Emeklilik ve Hayat.

The deal is still subject to conditions and approval from regulators, but will complete this year if all goes to plan.

Sabanci Holding, Aviva’s joint venture partner which is associated with one of Turkey’s richest families, will retain its 40% stake in the project.

It is the latest in a line of disposals by Aviva, which is focusing back in on its core markets.

The announcement follows hot on the heels of the 3.2 billion euro (£2.8 billion) sale of Aviva’s French unit.

Chief executive Amanda Blanc has said that the UK, Ireland and Canada will be Aviva’s focus going forward.

In just seven months since taking the top job she has made several major disposals, following in the footsteps of her predecessor.

Aviva sold Vietnamese and Italian units last autumn, the latter fetching £355 million. In September it agreed a £1.6 billion deal for its Singapore arm.

It is also in talks to sell a second business in Italy, according to a report from Bloomberg.

Insurance companies have been under pressure for several years, even before the onset of Covid-19. It has sparked a flurry of deal-making in the sector, as big companies seek to consolidate, or retreat from non-core markets.