Singapore-based cooperative NTUC Income, the country’s second-largest health insurer, is set to legally convert into a company governed by the Companies Act amid rising competition in the insurance space, The Straits Times reported.
Recently, the health insurer partnered with UOB Asset Management to provide companies with easier access to online investing.
NTUC Income said the change in its organizational structure will fuel its expansion plans by giving it more flexibility to raise funds, and offer competitive products to consumers.
As part of the conversion of its legal structure, NTUC Income will transfer its existing insurance business and assets to a new company called Income Insurance Limited, and the cooperative will be liquidated.
While shareholders of the new company will have one vote per share, existing institutional investors of NTUC Income who hold shares in the cooperative will receive an equivalent number of shares in Income Insurance Limited on a one-for-one basis.
See also: Can China’s ‘one for all, all for one’ approach to health insurance work in SEA?
Editing by Miguel Cordon and Arpit Nayak
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