Aviva will sell its majority shareholding in its Singapore unit to a consortium led by Singlife, a Singapore-based insurer. The combined entities is valued at S$3.2 billion, marking the deal as one of the largest in the insurance sector in Southeast Asia and the largest in Singapore.
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.
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). Navigator, dollarDEX and these two financial advisory firms are included in this transaction.
“The newly combined business will bring together Aviva Singapore’s established excellence and industry experience with Singlife’s innovative and digitally focused capabilities, offering customers an enhanced experience and a more comprehensive set of solutions,” said a company statement.
Subject to approval
Singlife and Aviva Singapore will continue to operate independently until the merger is complete. The transaction is subject to closing conditions, including regulatory approval, and is expected to complete by January 2021. Thereafter, the Singlife and Aviva Singapore legal entities will merge subject to approval by the Singapore courts targeting 1H 2021.
Aviva Singapore announced:
- There will be no changes as a result of this announcement to the terms, premiums and fees of policies you hold with Aviva Ltd, and investment accounts you have with Navigator or dollarDEX
- Our customer service is unchanged, and you will continue to communicate with the same experienced team
- We will continue to operate under the same brand until further notice
Subject to regulatory approval, current 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, while current Aviva Singapore CEO Nishit Majmudar will be appointed CEO of the combined entity’s Singapore licensed insurance business.
Singlife is the first independent homegrown company to be fully licensed by the Monetary Authority of Singapore (MAS) since 1970 as a life insurance company.
Aviva Singapore currently insures about 1.5 million customers and manages S$11.8 billion of assets. They are an approved provider to offer Integrated Shield Plans and ElderShield Supplements, which are top-ups to the national MediShield Life and ElderShield schemes. Aviva Singapore is also the appointed insurer for the Ministry of Defence, Ministry of Home Affairs and the Public Officers Group Insurance Scheme.
Aviva mulling sale of Asia business - 5 Aug 2019
Aviva to exit Indonesia, sells entire stake in PT Astra Aviva Life - 10 Mar 2020
Singlife prepares for SEA expansion with new Deputy CEO - 11 Jan 2020
SingLife moves in Philippine market - 26 Dec 2019
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