Sumitomo Life plans to acquire Singapore Insurer, Singlife at $4.6 Billion
Japanese insurer Sumitomo Life Insurance is making waves with a significant move in the insurance sector, announcing plans to fully acquire Singapore Life Holdings (Singlife) in a colossal deal valued at $4.6 billion. The strategic acquisition involves Sumitomo Life purchasing a substantial 35% stake from asset manager TPG for a hefty $1.6 billion. Sumitomo’s move is crucial for its Southeast Asia strategy, establishing Singlife as a wholly-owned subsidiary. This enhances Sumitomo’s regional presence.
Sumitomo Life unveiled the detailed transaction through a statement on the Singapore Exchange on December 22. The statement outlines the expected completion in the first quarter of 2024. However, the finalization is contingent upon obtaining regulatory approvals from both Japan and Singapore.
Singlife, founded in 2014, is now among Singapore’s top six insurers with total assets reaching $14.4 billion by December 31, 2022.
The acquisition serves as proof of Sumitomo’s strategic expansion and highlights Singlife’s strength and potential in the industry. It showcases Sumitomo’s confidence in Singlife’s position in the insurance and financial services landscape.
In a reassurance to stakeholders, Singlife stated that the acquisition would not trigger any alterations in its operations. This includes its name, brand, management team, or overall functions. Sumitomo Life, having initially invested in Singlife in 2019, views Singapore as a key component of its Southeast Asia strategy. The acquisition is anticipated to fortify Sumitomo’s international business portfolio, enhancing its earnings.
Singlife Chairman Ray Ferguson expressed enthusiasm about the prospects, emphasizing the journey from a small insurtech start-up to a pivotal player in Singapore’s insurance landscape. As Singlife becomes a subsidiary of Sumitomo Life, Ferguson highlighted the advantages, such as access to capital, a nimble shareholding structure, and integration into a strategic plan focused on providing financial planning solutions for consumers in Southeast Asia.
Sumitomo Life President and CEO Yukinori Takada echoed this sentiment. Subsequently, he emphasised the long-term investment’s role in facilitating group growth within the region. He acknowledged Singlife’s steady expansion in the digital-enabled business sphere. Furthermore, he assured support for its continued growth trajectory.
This major development follows Sumitomo’s progressive stake increase in Singlife in November. This was accompanied by the acquisition of Aviva’s stake in September, solidifying Singlife’s position as the exclusive insurance provider for key government schemes. In conclusion, Sumitomo’s comprehensive acquisition strategy positions it as a major player in shaping Southeast Asia’s evolving insurance landscape.
