Sumitomo Life Buys 35% of Singlife from Private Equity TPG Capital at $3.4 Billion Valuation, Will Make Same Buyout Offer to All Remaining Shareholders
23rd December 2023 | Hong Kong
Sumitomo Life Insurance Company has announced to buy 35%of Singlife from private equity TPG Capital at $3.4 billion (S$4.6 billion) valuation, and will make the same buyout offer to all remaining shareholders. In November 2023, Sumitomo Life Insurance Company announced to provide $132 million capital injection (S$179,999,996) into Singlife, bringing total shareholding of Singlife to over 27% after recently acquired 25.9% shareholding from Aviva group for $1 billion. Singlife: “Leading homegrown financial services company Singapore Life Holdings Pte Ltd (“Singlife”), today announces that one of its substantial shareholders, Sumitomo Life Insurance Company (“Sumitomo Life”) has entered into a binding agreement, to purchase all the shares in Singlife held by TPG*. TPG has invested in Singlife since 2020 and owns some 35% of the company. Sumitomo Life will also make an offer to buy up the shares of all other remaining shareholders. If all the offers are accepted, Sumitomo Life will have 100 percent ownership of Singlife. The deal values Singlife at S$4.6b and is therefore one of the largest insurance deals in Southeast Asia to date. The agreement comes on the back of Sumitomo Life’s purchase of Aviva plc’s stake in Singlife, first announced on 13 September 2023. The transactions are expected to complete in the first quarter of 2024 and are subject to regulatory approvals in Japan and Singapore.” More info below:
“ Sumitomo Life Buys 35% of Singlife from Private Equity TPG Capital at $3.4 Billion Valuation, Will Make Same Buyout Offer to All Remaining Shareholders “
Singlife Chairman, Ray Ferguson: “This has been an incredible journey for Singlife. We have grown from a small insurtech startup to become a key player in Singapore’s insurance and financial services industry. We are very pleased that the shareholders have reached an agreement which will solidify Singlife’s ambitions in Southeast Asia. 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 Southeast Asia.”
Sumitomo Life President & CEO, Yukinori Takada: “I am very pleased as this is a strategic, long-term investment that will help Sumitomo Life grow in Southeast Asia. Singlife has been steadily expanding on the strength of its digital enabled business with a wide range of products and sales channels. We have had a very good relationship with the Singlife management team and want to support their growth.”
Singlife Group CEO, Pearlyn Phau: “I would like to assure all partners, customers and staff that Singlife will stay true to its vision, mission and values. We’ve had great conversations with Sumitomo Life over the past year. They are committed, long-term investors and they do not want to change the way we operate. They are fully behind our business strategies and plans. We agree that we will continue to focus first on our customers, to continually build better solutions to help them and their families achieve financial freedom.”
Sumitomo Life Buys 35% of Singlife from Private Equity TPG Capital at $3.4 Billion Valuation, Will Make Same Buyout Offer to All Remaining Shareholders
22nd December 2023 – Leading homegrown financial services company Singapore Life Holdings Pte Ltd (“Singlife”), today announces that one of its substantial shareholders, Sumitomo Life Insurance Company (“Sumitomo Life”) has entered into a binding agreement, to purchase all the shares in Singlife held by TPG*. TPG has invested in Singlife since 2020 and owns some 35% of the company. Sumitomo Life will also make an offer to buy up the shares of all other remaining shareholders. If all the offers are accepted, Sumitomo Life will have 100 percent ownership of Singlife. The deal values Singlife at S$4.6b and is therefore one of the largest insurance deals in Southeast Asia to date. The agreement comes on the back of Sumitomo Life’s purchase of Aviva plc’s stake in Singlife, first announced on 13 September 2023. The transactions are expected to complete in the first quarter of 2024 and are subject to regulatory approvals in Japan and Singapore.
Sumitomo Life, which had first invested in Singlife in 2019, sees Singapore as a key part of its Southeast 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. Sumitomo Life is fully supportive of Singlife’s plans and its longer term aspirations for growth in both Singapore and the broader region. Singlife is one of the top six insurers in Singapore based on total assets of S$14.4b as at 31 December 2022.
The transaction, subject to closing conditions and relevant regulatory approval, is with Abbey Life Holdings Ltd, owned by TPG Capital.
Singlife
Singlife is a leading homegrown financial services company, offering consumers a better way to financial freedom. Through innovative, technology-enabled solutions and a wide range of products and services, Singlife provides consumers control over their financial wellbeing at every stage of their lives. In addition to a comprehensive suite of insurance plans, employee benefits, partnerships with financial adviser channels and bancassurance, Singlife offers investment and advisory solutions through its GROW with Singlife platform. It also offers the Singlife Account, a mobile-first insurance savings plan. Singlife is the exclusive insurance provider for the Ministry of Defence, Ministry of Home Affairs and Public Officers Group Insurance Scheme. Singlife is also an official signatory of the United Nations Principles for Sustainable Insurance and the United Nations-supported Principles for Responsible Investment, affirming its commitment to finding a better way to sustainability. First announced in September 2020 and valued at S$3.2 billion, the merger of Aviva Singapore and Singlife was the largest insurance deal in Singapore then and created one of the largest homegrown financial services companies in the republic.
Sumitomo Life to Provide $132 Million Capital Injection into Singlife, Brings Total Shareholding to Over 27% after Recently Acquired 25.9% Shareholding from Aviva Group for $1 Billion
9th November 2023 – Sumitomo Life Insurance Company is providing $132 million capital injection (S$179,999,996) into Singlife, bringing total shareholding of Singlife to over 27% after recently acquired 25.9% shareholding from Aviva group for $1 billion (subject to closing & regulatory approval). Singlife: “The capital injection will be used to support business growth. Singlife’s financial strength serves as a bedrock for its continued growth strategy, building on its comprehensive suite of insurance, employee benefits, and savings products and services. Complementing this portfolio are investment and advisory solutions through the GROW with Singlife platform, and the Singlife Account and app. The issue comprises 23,684,210 new shares, representing 4.92% of the increased share capital of Singapore Life Holdings Pte Ltd (Singlife). The share capital of Singlife and total issued shares have been increased from S$2,078,423,573.9 to S$2,258,423,569.9 and from 458,044,338 to 481,728,548 respectively. Following the capital injection on 7 November 2023, Sumitomo Life holds 27.001% of Singlife.” In September 2023, UK insurance group Aviva announced to sell SingLife 25.9% stake and 2 debt instruments to Sumitomo Life Insurance Company for $990 million (£800 million), with Sumitomo Life Insurance Company total SingLife shareholdings increasing from 23.2% to 49.1%. More info below:
UK Insurance Group Aviva Sells Singlife 25.9% Stake & Debt Instruments to Sumitomo Life Insurance Company for $990 Million, Sumitomo Life Insurance Company Total SingLife Shareholdings Increased from 23.2% to 49.1%
16th September 2023 – UK insurance group Aviva has announced to sell Singlife 25.9% stake and 2 debt instruments to Sumitomo Life Insurance Company for $990 million (£800 million), with Sumitomo Life Insurance Company total SingLife shareholdings increasing from 23.2% to 49.1%. Amanda Blanc, Group CEO of Aviva: “This is a good outcome for Aviva. The transaction further simplifies the business and we are in a very strong position to build on our trading momentum in the UK, Ireland and Canada.” More info below:
UK Insurance Group Aviva Sells Singlife 25.9% Stake & Debt Instruments to Sumitomo Life Insurance Company for $990 Million
13rd September 2023 – Aviva plc (“Aviva”) today announces that it has agreed to sell its 25.9% stake in Singapore Life Holdings Pte Ltd (“Singlife”), together with two debt instruments, to Sumitomo Life Insurance Company (“Sumitomo Life”) for total consideration of £0.8 billion (SGD 1.4 billion) payable in cash at closing. Sumitomo Life will pay consideration of £0.5 billion (SGD 0.9 billion) for Aviva’s equity stake and £0.3 billion (SGD 0.5 billion) for the two debt instruments. Sumitomo Life is currently a 23.2% shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy.
In 2022, Singlife contributed £17 million to Aviva’s operating profit. The combined carrying value of the equity stake and debt holdings contributed £729 million to Aviva’s IFRS 17 net asset value as at 30 June 2023. The transaction would have increased Aviva’s Solvency II shareholder surplus as at 30 June 2023 by £0.4 billion and the Solvency II shareholder ratio by c.8 percentage points. It would have increased centre liquidity by £0.8 billion. The equity value represents a multiple of 2.2x Solvency II Unrestricted Tier 1 capital as at June 2023.
Aviva’s exit from the Singlife joint venture represents a further step in the simplification of Aviva’s footprint following the international disposal programme completed in 2021. It is also consistent with the group’s ambition to focus on its capital-light business units. Aviva sold its majority stake in Aviva Singapore to a consortium led by Singlife in 2020.
The disposal proceeds will be considered alongside Aviva’s existing capital management framework. Under this framework, any surplus capital is available for reinvestment in the business, bolt-on M&A, and/or additional returns to shareholders. The transaction is subject to customary closing conditions, including regulatory approvals where required, and is expected to complete in Q4 2023.
About Singlife
The life insurance joint venture was formed following the merger of Singlife and Aviva Singapore in 2020, bringing together Aviva’s scale and leading franchise with Singlife’s innovative and digitally focused capabilities.
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