Aviva to develop digital insurance company with Hillhouse, Tencent

FTSE 100 insurer Aviva has agreed to develop an insurance company in Hong Kong focusing on digital insurance with Hillhouse Capital and Tencent Holdings.

As part of the agreement, Hillhouse and Tencent will buy shares in Aviva Hong Kong. Following completion of the transaction, Aviva and Hillhouse will each hold 40% and Tencent will hold 20% shareholdings in Aviva Hong Kong.

As part of the transaction, the shareholders' agreement between the parties contains options which may require Aviva to purchase or dispose of its shareholding in certain circumstances.

The transaction is subject to customary closing conditions, including regulatory approval.

At 0905 GMT, Aviva shares were up 0.5% to 478.70p.