UK insurer Aviva is set to sell a majority shareholding in Aviva Singapore to a local consortium, which will help create one of the largest insurance companies in the Lion City.
The consortium is led by Singapore Life, better known as SingLife, and includes global private equity investor TPG, Japanese insurer Sumitomo Life and other Singlife shareholders.
On completion, the company will initially rebrand as Aviva Singlife.
Investing in Singapore’s life market
The deals sees Aviva receive S$2.7bn (£1.5bn, $1.9bn, €1.6bn), comprising S$2bn in cash and marketable securities and S$250m in vendor finance notes.
It will also retain a 25% equity shareholding in the newly created group.
The firm said that no Singapore customer or policy will be impacted by the sale.
The transaction is subject to regulatory approval, and is expected to be completed by January 2021.
Amanda Blanc, who was appointed group chief executive at Aviva in July, said: “The sale of Aviva Singapore is a significant first step in our new strategy to bring greater focus to Aviva’s portfolio.
“We have achieved excellent upfront value for shareholders but have also retained an investment in a leading Singapore life business with attractive long-term growth potential. The proceeds from the sale will further strengthen our financial position and enhance our ability to meet our strategic objectives.
“We continue to work at pace and are seeking to take decisive action on our portfolio with the goal of further enhancing long-term value for our shareholders.”