AVIVA MOVES INTO KOREAN LIFE MARKET

UK-based composite Aviva has formed a consortium with South Korea-based Woori Finance Holdings to buy a 91.65% stake in South Korean insurer LIG Life. The company will pay 137.2bn won ($145.2m) for the stake, Aviva announced today. A memorandum of understanding to acquire the stake was signed in mid-December ( ID Asia , December 13 2007). Aviva will have a 40.65% stake in LIG Life after the deal completes. Aviva said that it planned to develop LIG Life’s distribution predominantly through bancassurance, exploiting Woori’s banking network and the independent financial adviser channel. In the year to March 31 2007, LIG Life recorded life premium income of 328bn won. Giving it a market share of just under 1%. Aviva Asia-Pacific CEO Simon Machell said that “South Korea is the second-largest life insurance market in Asia in terms of premium income and, with Aviva aiming to significantly increase its presence in Asia, a foothold in this market is a logical step”.  He added that Aviva aimed to deliver annual average growth of 20% in the Asia-Pacific region. Currently 8% of Aviva’s total sales are generated in Asia. The transaction is scheduled to complete by the end of June.