First Financial, Aviva to sign JV deal in Taiwan

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TAIPEI/LONDON, April 26 (Reuters) - Britain's largest insurer Aviva (AV.L) and Taiwan's state-run First Financial (2892.TW) have agreed to set up a joint venture to tap Taiwan's life insurance market, the two said on Thursday. Aviva and First Financial, Taiwan's number four financial holding company, said last October they were in exclusive talks over an insurance tie-up.

The initial paid up capital of the company -- First-Aviva -- will be 34 million pounds (T$2.25 billion), Aviva said, though First Financial said on Thursday it plans to eventually raise the investment to T$5 billion.

First Financial will hold a 51 percent stake in the joint venture, while Aviva will hold 49 percent.

The move signals First Financial's ambition to broaden its revenue stream in a highly competitive domestic banking market, from which it derives the bulk of its business.

Aviva has sought to boost its presence in Asia, long an area of strength for British rival Prudential (PRU.L).

"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," Aviva Executive Director Philip Scott said. "The prospects for future growth in the pensions market are particularly positive."

The partners are still awaiting approval from government regulators to set up the venture, but said a definitive deal was expected to be signed on April 27.

((Reporting by Rachel Lee in Taipei and Clara Ferreira-Marques in London; Writing by Faith Hung; editing by Erica Billingham; Reuters Messaging: faith.hung.reuters.com@reuters.net; +886 2 2508 0815)) Keywords: FIRSTFIN AVIVA/

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