Japan’s Sumitomo Life to fully acquire Singlife, tightening grip on SEA

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Japan-based insurance firm Sumitomo Life is set to complete its acquisition of Singapore’s Singlife following a new commitment to purchase all shares previously held by other entities.

This includes buying the 35% stake held by alternative asset manager TPG, which is scheduled for completion in the first quarter of 2024, according to a statement from Singlife.

The deal will value Singlife at S$4.6 billion (US$3.5 billion), making it one of the largest M&A deals in Southeast Asia’s insurance sector to date.

According to Singlife’s website, other shareholders in the company are insurance firm Aviva and private holding company IPGL, which are both based in the UK.

As of 2022, Singlife has S$14.4 billion (US$10.9 billion) in total assets, placing it among the top insurers in the city-state.

In September, Aviva announced that it was selling its 25.9% stake in Singlife and two debt instruments to Sumitomo Life for a total of US$997 million.

SEA ambitions

Sumitomo Life first invested in Singlife in 2019. After Aviva announced its plans to exit Singlife, the Japanese insurer injected US$132.8 million into the Singapore-based firm, increasing its stake to 27%.

The city-state, according to Sumitomo Life, is a crucial market for its Southeast Asia expansion, and the company believes the latest deal will boost its profits from its international business.

Similarly, the agreement will also “solidify Singlife’s ambitions in Southeast Asia,” Ray Ferguson, the firm’s chairman, said in the statement.

“As a subsidiary of Sumitomo Life, we will have access to capital, a nimble shareholding structure, and be at the center of a strategic plan to provide financial planning solutions for consumers in Southeast Asia,” he added.

After the acquisition, Singlife will retain its name, brand, management team, and product offerings.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.32.

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