Singlife to merge with Aviva Singapore
Singapore-based life insurer Singlife announced it will combine with Aviva Singapore in a deal that values the combined companies at S$3.2 billion. Besides its insurance business, Aviva Singapore also owns a unit trust platform, Navigator, as well as two of the largest financial advisory firms in Singapore, Aviva Financial Advisers (AFA) and Professional Investment Advisory Services (PIAS).
Singlife Chairman Ray Ferguson will continue as the Chairman of the new group. Singlife Group CEO Walter de Oude will be appointed as Deputy Chairman, and current Aviva Singapore CEO Nishit Majmudar will be appointed CEO of the combined entity’s Singapore licensed insurance business.
The new combined business will initially be named Aviva Singlife. Aviva plc will retain a 25% equity shareholding in this new, combined business. Singlife’s existing shareholder, Sumitomo Life Insurance Company will hold 20% of the group equity, while Aflac Ventures LLC, Aberdeen Asset Management PLC, IPGL Limited and minorities will collectively hold 20% of the group equity. TPG, a global alternative asset firm, will hold 35% of the group equity. TPG has been investing in a range of industries such as financial services, healthcare, retail, media and technology. In the financial services space, companies TPG has invested in include Korea First Bank, Shenzhen Development Bank, PT BFI Finance, BTPN, American Beacon, Du Xiaoman Financial, CD Finance, Ariel Re, ProSight, and Warranty Group.
The partnership follows Singlife’s acquisition of Zurich Life Singapore in 2018.
Singlife manages almost S$7.0 billion in life insurance coverage while Aviva Singapore currently insures about 1.5 million customers and manages S$11.8 billion of assets.