Japan-based Sumitomo Life Insurance Company has entered into an agreement with TPG Inc. to acquire TPG’s 35.48 percent stake in Singapore Life Holdings Pte. Ltd. (Singlife) for SGD 1.6 billion ($1.21 billion).

Together with the acquisition of additional stake in Singlife from Aviva Group Holdings Limited, announced on September 13, 2023, Singlife is expected to become a subsidiary of Sumitomo Life, Sumitomo Life said in a statement on Friday.

Furthermore, Sumitomo Life plans to acquire all the remaining shares from other Singlife shareholders under the same terms as this transaction, making Singlife a wholly owned subsidiary of Sumitomo Life.

Both the Transaction and Aviva Transaction are subject to closing conditions, including regulatory approval, and are expected to complete in the fourth quarter of FY2023.

According to the statement, Sumitomo Life has seen Singapore as a key market within its overall Asia strategy and supported Singlife to expand its footprint as a long-term strategic investor since Sumitomo Life’s initial investment in 2019.

It is noted that Singlife has been steadily expanding its business by taking advantage of the strengths of its own digital enabled business model since its foundation, as well as the acquisition of Aviva’s Singapore business in 2020, and became one of the leading life insurance companies in Singapore with a diverse range of products and sales channels.

Singlife has also extended its business into the Philippines as part of its expansion in Asia.

Based on these achievements and growth potential, as well as the good relationship between Sumitomo Life and Singlife which has been built so far, Sumitomo Life decided to make Singlife a subsidiary.

According to the statement, after the transaction, Sumitomo Life will strive to realize and maximize its group synergies by leveraging Singlife’s expertise to existing Sumitomo Life businesses in Asia.

In addition, Sumitomo Life plans to establish a local office in Singapore in April 2024 to strengthen relationship with Singlife and conduct market research in the region.

Furthermore, in the future, Sumitomo Life will explore the set-up of a regional headquarters in Singapore for promoting its Asia strategies, enhancing group governance and realizing group synergies with Singlife.

In this way, Sumitomo Life will increase earnings contribution from its overseas business which can strengthen its business sustainability and help realize “Sumitomo Life MediumTerm Business Plan 2025” and “Sumitomo Life Group Vision 2030.” Sumitomo Life aims to become an “indispensable insurance group” that contributes to well-being.

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