British insurer Aviva has agreed to sell a majority stake in its Singapore business to a consortium led by Singapore Life (Singlife) for S$2.7 billion (US$1.98 billion). The Singlife consortium includes private equity investor TPG, which will become the largest shareholder in the new group upon completion, Japanese insurer Sumitomo Life, and other existing Singlife shareholders.
The deal, expected to be completed by January 2021, includes S$2.0 billion in cash and marketable securities, S$250 million in vendor finance notes and a 25% equity shareholding in the new group, which will initially be branded Aviva Singlife in Singapore. The combination brings together Aviva Singapore’s scale and leading franchise with Singlife’s innovative and digitally focused capabilities, Aviva said in a statement.
Aviva group chief executive officer Amanda Blanc notes: “The sale of Aviva Singapore is a significant first step in our new strategy to bring greater focus to Aviva’s portfolio. We have achieved excellent upfront value for shareholders but have also retained an investment in a leading Singapore life business with attractive long-term growth potential. The proceeds from the sale will further strengthen our financial position and enhance our ability to meet our strategic objectives.”
Nishit Majmudar, the current chief executive officer of Aviva Singapore, will be appointed as CEO of the combined entity’s Singapore licensed business. This means that customers and partners of Aviva Singapore will continue to deal with Aviva as usual and there will be no impact to customer policies as a result of the deal.