The portfolio comprises around 5,000 policies that have been in run-off since December 2015, when Zurich closed to new business in the city-state.
The policies cover life, critical illness and disability benefits and are valued at around S$6bn (£3.3bn, $4.5bn, €3.8bn).
The deal, which does not affect any of Zurich’s other life or commercial insurance businesses in Singapore, is expected to close by mid-2018.
Singapore Life has assured policyholders that they will continue to have the existing terms and conditions of their policies upheld.
The city-state’s newest life insurer was licensed by the Monetary Authority of Singapore in June 2017, becoming the first local insurer in nearly half a century to be given a licence.
The company offers high net worth universal life solutions for “those that prefer Singapore and the Singapore regulatory environment as a destination for their wealth and protection needs”, the company said in its acquisition announcement.
It also offers protection solutions that are available both digitally and through financial advisers.
Walter de Oude, chief executive, Singapore Life, said: “Bringing this portfolio of customers into that of Singapore Life’s is exactly in line with our strategy to accelerate quickly in becoming a preferred Singaporean insurance company for our customers’ needs.
“With the strong support from our shareholders, we are confident that this agreement will demonstrate Singapore Life’s aspirations for significant growth and positively contribute to Singapore’s insurance industry and beyond. We will continue to look for further acquisitions over time.”
Zurich’s portfolio optimisation
David Kneale, chief executive, Zurich Life Singapore, added: “This decision is in line with Zurich’s strategy to optimise its portfolio and geographical footprint, and follows an extensive process to ensure that existing policyholder terms and conditions are safeguarded.
“We are confident our customers will continue to enjoy a high level of service and security with Singapore Life. We remain fully committed to growing our commercial insurance business in Singapore and maintaining excellent customer service for our international life customers who are not impacted by the transfer.”