Homegrown Singlife and Aviva Singapore to merge in $2.3b deal

The deal is expected to complete by January next year and the new entity will be set up within the first half of 2021. The duo will operate independently until the merger is completed.

The combined business, initially to be named Aviva Singlife, will trade using both the Singlife and Aviva brands.

Once the two companies merge, current Singlife chairman Ray Ferguson will continue as chairman of the new group while CEO Walter de Oude will be appointed as deputy chairman. Current Aviva Singapore chief executive Nishit Majmudar will work as chief executive of the combined entity’s Singapore licensed insurance business.

Additionally, Aviva and Singlife’s existing shareholder Sumitomo Life Insurance Company will hold 25% and 20% equity shareholding respectively in the new business. Aflac Ventures, Aberdeen Asset Management, IPGL Limited, and minorities will collectively hold 20% while the remaining 35% will be held by private equity firm TPG.

“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,” said Ferguson.

Singlife was founded in 2014 and recorded US$1 million in profit in 2018. Last year, it achieved US$171 million in total income, which tripled from US$54 million in the year prior.

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Currency converted from Singapore dollar to US dollar: US$1 = S$1.37.