Sumitomo Life Proposes Full Acquisition of Singlife, Valuing Singapore Insurer at $4.6B

22 Dec, 2023

Sumitomo Life Proposes Full Acquisition of Singlife, Valuing Singapore Insurer at $4.6B

Japanese insurer Sumitomo Life Insurance has initiated one of the most substantial insurance deals in the region by proposing a full acquisition of Singapore insurer Singapore Life Holdings (Singlife), valuing the company at $4.6 billion.

As part of the deal, Sumitomo Life will purchase asset manager TPG's 35% stake in Singlife for $1.6 billion and extend an offer to acquire shares held by minority investors. This move would establish Singlife as a wholly owned subsidiary of Sumitomo Life, aligning with the Japanese insurer's strategy in Southeast Asia.

Singlife announced on the Singapore Exchange that the transactions are anticipated to conclude in the first quarter of 2024, pending regulatory approvals in Japan and Singapore. According to Singlife's statement, Sumitomo Life, an initial investor in Singlife in 2019, views Singapore as integral to its Southeast Asia strategy and anticipates enhancing the earnings of its international business portfolio through this deal.

Singlife assured stakeholders that the acquisition wouldn't alter its operations, including its name, brand, management team, or overall functioning, thereby assuring customers of no impact.

Ray Ferguson, Singlife's chairman, expressed excitement about the firm's transition from an insurtech startup to a significant player in Singapore's insurance and financial services industry. He highlighted the advantages of becoming a Sumitomo Life subsidiary, emphasizing access to capital and participation in a strategic plan for financial planning solutions across Southeast Asia.

Sumitomo Life's President and CEO, Yukinori Takada, highlighted the long-term investment's significance in the group's regional growth. Takada acknowledged Singlife's digital-enabled expansion in diverse products and sales channels, pledging support for its continued growth.

Founded in 2014, Singlife ranks among Singapore's top six insurers, boasting total assets of $14.4 billion as of December 31, 2022.

This acquisition follows Sumitomo Life's previous actions, including a stake increase in Singlife to 27% from 23.2% in November, and the purchase of Aviva's 25.9% stake in Singlife for $900 million in September. Singlife's prior acquisition of Aviva established it as the sole insurance provider for Singapore's Ministry of Defence, Ministry of Home Affairs, and Public Officers Group Insurance Scheme.