SINGAPORE - In one of the largest insurance deals in the region, Japanese insurer Sumitomo Life Insurance is offering to fully acquire local insurer Singapore Life Holdings (Singlife), valuing it at $4.6 billion.
Under the deal, Sumitomo Life will buy asset manager TPG’s 35 per cent stake in Singlife for $1.6 billion. It will also offer to acquire the shares of minority investors.
The move would mean Singlife becomes a wholly owned subsidiary of Osaka-based Sumitomo Life. It is part of the Japanese insurer’s strategy in South-east Asia.
In a statement issued on the Singapore Exchange on Dec 22, Singlife said the transactions are expected to be completed in the first quarter of 2024 and are subject to regulatory approvals in Japan and Singapore.
The statement added: “Sumitomo Life, which had first invested in Singlife in 2019, sees Singapore as a key part of its South-east Asia strategy and expects the deal to strengthen the earnings of its international business portfolio.
“It does not intend to change the way Singlife operates, whether it is in its name, brand, management team or operations, hence there will be no impact to any customers.”
The home-grown insurer added that Sumitomo Life is fully supportive of its plans and its longer-term aspirations to grow in both Singapore and the broader region.
Singlife chairman Ray Ferguson said the firm has grown from a small insurtech start-up to become a key player in Singapore’s insurance and financial services industry.
“As a subsidiary of Sumitomo Life, we will have access to capital, a nimble shareholding structure, and be at the centre of a strategic plan to provide financial planning solutions for consumers in South-east Asia,” he said.
Sumitomo Life president and chief executive Yukinori Takada said the long-term investment will help the group grow in the region.
He added that Singlife has steadily expanded its digital-enabled business with a wide range of products and sales channels, and the group will support its growth.
Singlife, founded in 2014, is one of the top six insurers in Singapore based on total assets of $14.4 billion as at Dec 31, 2022.
The deal comes after the Japanese insurer in November increased its stake in Singlife to 27 per cent from 23.2 per cent by buying $180 million of new shares.
In September, Sumitomo Life agreed to buy the 25.9 per cent stake in Singlife held by British-based Aviva for $900 million.
Singlife partnered TPG and Sumitomo to buy a majority stake in Aviva’s Singapore business in 2020 for about $2.7 billion.
The acquisition of Aviva made Singlife the sole insurance provider for Singapore’s Ministry of Defence, Ministry of Home Affairs and Public Officers Group Insurance Scheme.
