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Friday, September 11, 2020 – 11:08 pm
Insurer HOMEGROWN Singapore Life (Singlife) intends to merge with Aviva Singapore in a deal valued at S $ 3.2 billion, which will make it one of the largest in the Southeast Asian insurance sector and the largest in Singapore.
In a statement issued late Friday, Singlife said the deal will bring its mobile savings and protection solutions to Aviva’s strong 1.5 million customer base, and will offer existing Singlife customers a further range of products. insight and counseling capabilities.
The transaction is subject to closing conditions, including regulatory approval, and is expected to be completed in January 2021. The merger of legal entities Singlife and Aviva Singapore is scheduled for the first half of 2021, subject to approval by the courts of Singapore. Until the merger is complete, Singlife and Aviva Singapore will continue to operate independently.
When merged, the new combined business will initially be called Aviva Singlife and will initially be marketed under the Singlife and Aviva brands.
Subject to regulatory approval, current Singlife Chairman Ray Ferguson will continue as Chairman of the new group. Singlife Group Chief Executive Officer Walter de Oude will be appointed Vice Chairman, and current Aviva Singapore Chief Executive Officer Nishit Majmudar will be appointed Chief Executive Officer of the combined entity’s Singapore Licensed Insurance business.
Aviva will retain a 25 percent equity stake in the new business, while Singlife’s current shareholder, Sumitomo Life Insurance Company, will hold 20 percent. Aflac Ventures, Aberdeen Asset Management, IPGL Limited and minorities will collectively own 20%. Global alternative assets firm TPG will hold the remaining 35%.
Mr. Ferguson noted that Covid-19 and changing consumer demands have created more interest in mobile savings and protection solutions, as well as on-demand financial advice. “By joining forces with Aviva Singapore, we are creating a regional brand of our own that will go well beyond insurance and fulfill these ambitions by creating innovative financial products with intuitive technology and independent advice.”
Majmudar said that the partnership will boost Aviva Singapore’s customer experience capabilities. “Joining forces with Singlife, known for its mobile-first approach, will further enhance what we offer – a complete suite of solutions with a superior customer experience.”
Said Mr de Oude: “We are building something truly inspiring, leveraging the best of financial services for the benefit of Singaporeans and the region.”
The partnership is Singlife’s most important milestone to date, and its previous milestone was the acquisition of Zurich Life Singapore in 2018. Singlife manages nearly S $ 7 billion in life insurance coverage.
Aviva Singapore’s businesses included in the transaction are its insurance business, the Navigator and dollarDEX unit trust platforms, and two of Singapore’s largest financial advisory firms, Aviva Financial Advisers and Professional Investment Advisory Services.
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