[ad_1]
SINGAPORE: British life, auto and home insurer Aviva said on Friday (September 11) that it will sell its majority stake in its Singapore business to a consortium led by Singapore Life for S $ 2.7 billion (US $ 1, 98 billion), as the company reduces its focus on Asia.
The Singlife consortium includes alternative asset firm TPG, which will become the largest shareholder in the new group upon completion, Japanese insurer Sumitomo Life and other existing Singlife shareholders.
“The sale of Aviva Singapore is an important first step in our new strategy to further focus Aviva’s portfolio,” said newly appointed CEO Amanda Blanc.
Blanc has been looking to sharpen the company’s focus in Great Britain, Ireland and Canada.
Former CEO Maurice Tulloch conducted a strategic review of Asian businesses last year, but sources said he was unable to secure a high enough price to sell Aviva’s Singapore division.
The deal consists of S $ 2 billion in cash and marketable securities, S $ 250 million in vendor promissory notes and a 25 percent equity stake in the new group.
Initially, the new company will be called Aviva Singlife in Singapore.
In a press release, Singlife said that its current president, Ray Ferguson, will continue as president of the new group.
Singlife Group Chief Executive Officer Walter de Oude will be appointed Vice Chairman, while current Aviva Singapore Chief Executive Officer Nishit Majmudar will be appointed Managing Director of the combined entity’s Singapore Licensed Insurance business.
The transaction is subject to closing conditions, including regulatory approval, and is expected to be completed in January 2021.
Aviva Singapore currently secures around 1.5 million clients and manages assets of S $ 11.8 billion.
Its customers and partners will continue to deal with the company as usual and there will be no impact on customer policies, the company said.
