Aviva has joined forces with Indonesian conglomerate PT Astra International Tbk to launch a life company.
The two companies have today signed an agreement to form Astra Aviva Life, a 50/50 joint venture that will sell and distribute life insurance products in Indonesia.
Aviva group chief executive Mark Wilson says: “Astra is a hugely respected household name in Indonesia and the ideal partner for Aviva in one of the world’s fastest growing insurance markets.
“This joint venture creates a compelling growth opportunity, underlines our commitment to Asia and supports our strategy of cash flow plus growth. This joint venture is good for Aviva, good for Astra and good for our customers.”
The move comes after a period of significant instability for Aviva. In July 2012, the insurer announced a £400m global cost-cutting drive in July as chairman John McFarlane outlined plans to slash costs to appease shareholders disappointed by the company’s performance.
This included exiting 16 ‘non-core’ businesses across the globe and pulling out of the large-scale bulk annuity market in the UK.
In addition, the provider has made hundreds of job cuts in the UK as part of the restructure.