British company Aviva, the world’s fifth-largest insurer, is selling its Asian general insurance business to Mitsui Sumitomo Insurance of Japan.

CEO Richard Harvey says the sale decision was prompted by a desire to refocus on the group’s Asian long-term savings operations, which will not be sold.

It was the latest step in a gradual global disengagement from general insurance for Aviva. In 2002 it sold its general insurance interests in Australia and New Zealand to IAG for $1.8 billion.

Mitsui will pay $US450 million to secure the deal, which will make it Asia’s largest general insurer.

The sale will occur in stages. Regulatory approval is needed from Singapore, Malaysia, Thailand, Indonesia, Hong Kong, the Philippines and Taiwan.

General insurance business from Aviva’s Asian markets contributed $US309 million in gross premiums to the group’s 2003 results.

Mitsui’s Asian region premiums last financial year totalled $US381 million, and it says the figure will be $US636 million or more in the future.

The purchase by Mitsui was not unexpected, according to industry analysts who said the company had outgrown the saturated Japanese insurance market.

Mr Harvey says Aviva has no plans to sell any other insurance businesses. He believes that shareholders will welcome the sale, and says the price is equivalent to 2% of Aviva’s market capitalisation.