Singapore Life (Singlife), the Singapore-based digital insurance provider backed by conglomerate Sumitomo and insurance firm Aflac, agreed on Friday to merge with insurance group Aviva’s Singaporean subsidiary.
Aviva will take a 25% stake in the business in addition to S$2bn ($1.46bn) in cash and marketable securities and $183m in vendor finance notes for the sale of Aviva Singapore.
Singlife provides a mobile-focused insurance service that offers health and life insurance having been granted a licence in 2017. It launched a savings plan in March this year and the app had been downloaded more than 100,000 times as of the end of June.
The combined business, which will be known as Aviva-Singlife once the transaction formally closes, will be valued at approximately $2.34bn.
Private equity group TPG will be the company’s largest shareholder, with a 35% stake, though details of any earlier investment in Singlife have not been disclosed. It may have simply contribuetd to the cash outlay for the deal.
Sumitomo’s insurance subsidiary, Sumitomo Life, will own 20% of the company’s shares having paid $90m for a stake in Singlife sized at approximately 25% in July 2019.
Aflac had invested $20m in the company in January the same year, before asset manager Aberdeen Standard Investments added $13m the same month.
Singlife had previously raised $50m from investors including financial technology provider Credit China Fintech Holdings and investment holding company IPGL in 2017.
Ray Ferguson, chairman of Singlife, said: “Covid-19 and changing consumer demands have changed the way people think about financial services, and more than ever before 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 homegrown regional brand that will go far beyond insurance and deliver on these ambitions by creating innovative financial products with intuitive technology and independent advice.”
