Aviva, Tencent Holdings and Hillhouse Capital have agreed to develop an insurance company in Hong Kong, which will focus on digital insurance.
As part of the agreement, Hillhouse and Tencent will acquire shares in Aviva Life Insurance Company Limited (Aviva Hong Kong).
Following completion of the transaction, Aviva and Hillhouse will hold a combined 60 percent shareholding 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 move also marks Tencent’s foray into Hong Kong’s digital insurance market, after it moved into mainland China’s insurance market.
Aviva said: “The joint venture has been approved by Hong Kong’s Insurance Authority and is expected to start operating under its new corporate structure during the first half of 2018.”
The transaction is subject to customary closing conditions, including regulatory approval.