NDB signs agreement with AIA

With Aviva's decision to exit Aviva NDB Insurance (ANI), the NDB Group has entered into a Share Sale and Purchase Agreement with American International Assurance Company Limited (AIA) of Hong Kong, a large insurance company, whereby NDB Group has agreed to sell its shareholding in Aviva NDB Holdings Lanka (Private) Limited (Aviva NDB Holdings) to AIA, a media release from the company said.

The finality of the intended sale process is expected to be reached by end 2012, subject to regulatory and legal arrangements.

The NDB will also enter into an exclusive Bancassurance agreement with AIA as the new controlling shareholder of ANI for 20 years. NDB Group will purchase the balance shareholding of NDB Aviva Wealth Management PLC with the sale's proceeds, subject to having in place the regulatory and legal arrangements.

This will result in NDB Capital Holdings Plc owning 100 percent of this company. A fund management agreement will also be in place to manage ANI's insurance funds exclusively for 20 years.