Aviva, the international savings, investments and insurance group, is to enter an agreement with First Financial Holding (FFHC) to form a joint venture company in Taiwan, First-Aviva.
Under the terms of the agreement, FFHC will hold 51% of the equity share capital of First-Aviva, with Aviva holding the remaining 49%. The initial paid up capital of the company will be £34m.
First-Aviva will manufacture long-term savings and pension products in Taiwan and distribute them through an exclusive bancassurance agreement with FFHC's flagship subsidiary, First Commercial Bank. First Commercial Bank is Taiwan's second largest bank network, with 187 branches and five million retail customers.
Philip Scott, executive director of Aviva, commented: "Aviva's entry into Taiwan further extends our leading position in international bancassurance and we're excited by the potential of the Taiwanese life insurance market, which is the 4th largest in Asia. The prospects for future growth in the pensions market are particularly positive."
Both parties are intending to sign definitive documentation in Taipei on 27 April, 2007. The formation of the joint venture company remains subject to regulatory approval in Taiwan.
