avivaFrom today, Friends Provident International is officially part of the Aviva Group. Not known to many people, Friends Provident International has been running business in Singapore for many years, but only servicing mass affluent and high net worth clients.

In my view, Aviva and Friends Provident Life are complementary businesses and their combination will enhance business growth aspirations materially.

Bringing together Friends Life and Aviva has allowed Aviva to create a stronger insurance and savings business, which is a market leader in the UK and has a strong position in Asia and the Middle East.

Here are a few facts and figures to give you an overview of the new Aviva scale after the merger:

  • Aviva and Friends have a combined 34 million customers (Before deducting overlapping customers) across 16 countries.
  • In the UK, Aviva is the leading insurer serving one in every four households.
  • Aviva shares are listed on the London Stock Exchange and a member of the FTSE100 index.
  • Aviva has strong businesses in Europe, Asia and Canada.
  • Aviva has a presence in seven markets in Asia (Singapore, China, Indonesia, Hong Kong, Vietnam, Taiwan and India), with leading positions in the core markets and strong partnerships with leading local players.
  • Aviva Group now offers the combined capabilities of individual protection, group protection, investment management, wealth management, life insurance and general insurance.

I was often asked what if the insurer decides to discontinue their businesses. In fact, merger of insurers are common in Singapore.

Just two years ago, AXA has taken over both general insurance and employee benefit business from HSBC. If you look back further, Manulife has taken over John Hancock, Prudential has take over UOB insurance.

I think with the increasing cost of running insurance business, these kind of merger will just become prevalent.

 

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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