Sri Lanka’s NDB Bank undecided on Aviva unit: official

June 22, 2012(LBO) – Sri Lanka's NDB Bank Plc, has not a made a decision to buyout their partner or exit a joint venture insurance unit with Britain's Aviva, which reports said is on the block as part of a retreat from Asian markets. NDB Group’s Chief Executive, Russell de Mel said if Aviva's stake is sold off, the new investor would also benefit from a partnership with NDB, which has Sri Lanka's largest fund management unit.

"There is a big insurance fund that is being built up, and it has to be professionally managed, and I believe that whoever who comes, will opt to be with NDB Capital Holdings because we are the best, de Mel said.

NDB Aviva Wealth Management, is managing some 50 billion rupees of assets.

Aviva NDB Insurance generated 12.8 billion rupees (99 million dollars) in revenue last year and earned a post-tax profit of 691.6 million rupees.

The insurance joint venture was recently reassigned under NDB Capital Holdings Plc, a full-service investment bank unit,that also offers wealth management, stockbroking, private equity and strategic investments.

Western media reports speculated that plans by Aviva to exit some Asian markets included disposing investments in Sri Lanka and South Korea.