Singapore and Jack Ma have teamed up on a Hong Kong insurer. The city-state is redirecting funds freed up by its ill-fated investment in UBS.
GIC, one of Singapore's sovereign wealth funds, has gone on an acquisition tear since dumping a decade-long investment in UBS three months ago.
In July, it bought a stake in market intelligence firm MergerMarket. Earlier this month said it would go in on a stake in a talent and entertainment agency which brokered the upcoming bout between mixed martial arts star Conor McGregor and U.S. boxer Floyd Mayweather.
Now, the GIC said it has teamed up for a more classical investment: life insurance in Hong Kong.
Insurance Growth
Singapore is joining a consortium of investors in Asia led by Yunfeng Financial Group in buying Mass Mutual's business in Asia from its U.S.-based parent.
Yunfeng, which is backed by Alibaba billionaire Jack Ma, will take 60 percent of Mass Mutual in Asia, while the GIC will hold 7.5 percent. Other investors include Ma's Ant Financial, Sina, Harvest Billionaire International Ltd., and Sheen Light Development Ltd. with roughly 5 percent each, Meyu International with nearly 10 percent, and Giant Interactive with 2.8 percent.
«As a long-term value investor, GIC believes MassMutual Asia will continue to enjoy the consistent growth of Hong Kong’s life insurance industry,» the GIC said in a statement.
Luckless UBS Stake
The GIC was quietly criticized in Singapore, including by finews.asia, for its lack of investment savvy in UBS, a crisis-era investment in which it lost billions. The fund conceded disappointment its investment in the Swiss bank, in which it still retains a small stake.
It also said it would seek returns elsewhere, something it echoed with the Mass Mutual deal.
«The acquisition is at a very reasonable valuation, and there could be significant value creation through strategic collaboration among MassMutual Asia, Yunfeng FG, and Ant Financial,» the GIC said.
