Singapore Life and Aviva Singapore will combine units in an insurance merger valued at around $2.35 billion.
Included in the S$3.2 billion ($2.35 billion) merger is Singlife along with Aviva Singapore's insurance business, unit trust platforms Navigator and dollarDEX, and two of the largest financial advisory firms in Singapore, Aviva Financial Advisers and Professional Investment Advisory Services, according to a statement.
Under the newly combined unit – initially named Aviva Singlife – 25 percent shareholding will be retained by Aviva. The remaining shares are held by existing Singlife investor Sumitomo Life Insurance (25 percent), global alternatives manager TPG (35 percent) alongside Aflac Ventures, Aberdeen Asset Management, IPGL Limited and minorities (20 percent).
Management Reshuffle
Post-merger, current Singlife chairman Ray Ferguson will continue as the chairman of Aviva Singlife. Singlife's group chief executive Walter de Oude will be named deputy chairman and current Aviva Singapore CEO Nishit Majmudar will be named CEO of the combined entity's licensed insurance business.
The transaction and management reshuffle are subject to regulatory approval after which the merger expected to take place in the first half of 2021.
Mobile Drive
One of the main strategies from the merger will be a focus on bringing Singlife's mobile savings and insurance solutions to Aviva’s 1.5 million customers to further boost the former's existing $5.1 billion in coverage.
«By joining forces with Aviva Singapore, we are creating a homegrown regional brand that will go far beyond insurance and deliver on these ambitions by creating innovative financial products with intuitive technology and independent advice,» said Ferguson, highlighting the pandemic as a driver of mobile demand.
«Joining forces with Singlife, known for its mobile-first approach, will further enhance what we deliver - a comprehensive set of solutions with a superior customer experience,» Majmudar added.
