AIA to buy Aviva's Sri Lankan unit in $109 million deal

HONG KONG, Sept 27 (Reuters) - AIA Group Ltd has agreed to buy British insurer Aviva's 92.3 percent stake in Sri Lankan insurer Aviva NDB Insurance, AIA said in a statement on Thursday, making it the Asian insurer's first acquisition since its initial public offering two years ago.

AIA will pay a net $109 million for the deal, which includes a 20-year exclusive bancassurance agreement with Sri Lanka's National Development Bank.

Shares of AIA were up 1.24 percent at 28.60 at midday on the Hong Kong Stock Exchange.