Singlife becomes fully owned unit of Sumitomo Life.

Singlife becomes fully owned unit of Sumitomo Life.

Singlife, a homegrown financial services company in Singapore, has announced that it will become a wholly owned subsidiary of Sumitomo Life Insurance Company [1]. According to the press release, Sumitomo Life has entered into a binding agreement to purchase all the shares in Singlife held by TPG, a substantial shareholder of Singlife. TPG has invested in Singlife since 2020 and owns around 35% of the company. Sumitomo Life also plans to buy up the shares of all other remaining shareholders, which would result in the Japanese insurer owning 100% of Singlife.

The deal values Singlife at S$4.6 billion, making it one of the largest insurance deals in Southeast Asia to date [1]. The agreement comes after Sumitomo Life's purchase of Aviva plc's stake in Singlife, which was announced on September 13, 2023 [1]. The transactions are expected to be completed 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 [1]. The Japanese insurer has no plans to change the way Singlife operates, including its name, brand, management team, or operations, and there will be no impact on Singlife's customers. Sumitomo Life is fully supportive of Singlife's plans and its longer-term aspirations for growth in both Singapore and the broader region [1].

Singlife Chairman, Ray Ferguson, said, "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 recognized the value we have created, and we are excited about the opportunities ahead of us as part of the Sumitomo Life group" [1].

In conclusion, the acquisition of Singlife by Sumitomo Life is a significant development in the insurance industry, and it will be interesting to see how the Japanese insurer integrates Singlife into its international business portfolio. With the backing of a major player in the industry, Singlife is well-positioned to continue growing and expanding its services in Singapore and the broader region.

References:
[1] https://singlife.com/en/about-us/newsroom/2023/singlife-bought-by-sumitomo-life