International Finance

Aviva sells 75% of its Singapore business to rival Singlife

Aviva Singlife_IFM_Image
The deal is expected to be completed in 2021

UK-based insurer Aviva has sold around 75 percent stake of its Singapore business to local rival Singapore Life (Singlife), the media reported.

According to reports, the deal between Aviva and Singlife could be the largest insurance deal ever in Singapore. The transaction, which is subject to regulatory approval, is expected to be completed in 2021.

The combined entity will be initially known as Aviva Singlife, and is valued at SG$3.2 billion, according to a statement from the insurers.

Aviva and Singlife’s existing shareholder Sumitomo Life Insurance Company will reportedly hold 25 percent and 20 percent equity shareholding respectively in Aviva Singlife.

Also, Aflac Ventures, Aberdeen Asset Management, IPGL Limited, and minorities will collectively hold 20 percent while the remaining 35 percednt will be held by private equity firm TPG.

Ray Ferguson, who currently serves as the chairman of Singlife, will remain as chairman of the new group. Singlife group chief executive Walter de Oude will take up the role of deputy chairman, while current Aviva Singapore chief executive Nishit Majmudar will take on the role of chief executive officer of the new combined entity.

Ray Ferguson told the media, “Singlife was created with the ambition to reshape finance and help unlock the potential of money for everyone. Covid-19 and changing consumer demands have changed the way people think about financial services, and more than ever before they want to engage in a mobile-first way for their ordinary savings and protection needs, and still get the financial advice they need, when they need it.”

“By joining forces with Aviva Singapore, we are creating a home-grown regional brand that will go far beyond insurance and deliver on these ambitions by creating innovative financial products with intuitive technology and independent advice,” he said.

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