Sumitomo Life Insurance Company (Sumitomo Life), a substantial shareholder in Singlife, has reached a binding agreement to acquire all shares held by TPG in Singlife.
TPG, which has been an investor since 2020, currently owns approximately 35% of Singlife.
In addition to this acquisition, Sumitomo Life plans to extend an offer to purchase shares from all other remaining shareholders. If these offers are fully accepted, Sumitomo Life will secure complete ownership of Singlife, valuing the company at S$4.6 billion.
This valuation ranks the deal as one of the largest in the Southeast Asian insurance sector.
This agreement follows Sumitomo Life’s recent purchase of Aviva plc’s stake in Singlife, initially announced on September 13, 2023. The transactions are expected to be finalized in the first quarter of 2024, pending regulatory approvals in Japan and Singapore.
Sumitomo Life, which first invested in Singlife in 2019, views Singapore as an integral part of its Southeast Asia strategy. The company anticipates that the acquisition will bolster the earnings of its international business portfolio.
There are no planned changes to Singlife’s operations, including its name, brand, management team, or operational processes, ensuring no impact on customers. Sumitomo Life fully supports Singlife’s growth plans in Singapore and the broader region.
Ray Ferguson, Singlife’s Chairman, remarked on the company’s evolution from a small insurtech startup to a significant player in Singapore’s insurance and financial services industry. He expressed satisfaction with the agreement’s potential to enhance Singlife’s position in Southeast Asia.
Yukinori Takada, President & CEO of Sumitomo Life, described the acquisition as a strategic, long-term investment aimed at expanding Sumitomo Life’s presence in Southeast Asia.
He commended Singlife’s digital-enabled business model and product diversity and emphasized their strong relationship with Singlife’s management.
Pearlyn Phau, Singlife Group CEO, reassured partners, customers, and staff that Singlife will maintain its vision, mission, and values.
She highlighted Sumitomo Life’s commitment as long-term investors and their support for Singlife’s business strategies and customer-centric focus.
As of December 31, 2022, Singlife is among the top six insurers in Singapore, with total assets of S$14.4 billion.
AsiaTechDesk.com