London-based Aviva Group will exit its Singlife joint venture by selling its stake to a Japanese insurance company.
Aviva Group has entered an agreement to sell its 25.9 percent stake in Singlife to Sumitomo Life Insurance, according to a statement. Valued at 800 million British pounds ($997 million), the deal also includes the acquisition of two debt instruments held by Aviva, including reset subordinated perpetual capital securities issued by Singlife.
The transaction is expected to be completed in the fourth quarter of 2023.
This marks the end of the Aviva-Singlife joint venture which was first announced three years ago in September 2020. According to the British insurer, the venture contributed to 17 million pounds in operating profit for 2022.
Sumitomo Life
On the other hand, Sumitomo Life will boost its stake in Singlife from the current 23.2 percent, though the exact ownership size after the transaction will vary depending on other shareholders at the Singaporean insurer. According to Sumitomo Life, the deal is expected to improve the earnings of its international portfolio and business sustainability.
«Sumitomo Life has seen Singapore as a key market within its overall Southeast Asia strategy and supported Singlife to expand its footprint as a long-term strategic investor since Sumitomo Life’s initial investment in 2019,» the Japanese insurer said.
