Latest Insurance
- Climate-Insurance Newslink Global Trends-Editor's Quarterly Highlights
- Ariel Re relaunches clean energy division as ‘Ariel Green,’
- Loadsure partners with WeatherOptics
- Miller and Clearwater Dynamics partner to establish marine insurance solution for the Ukrainian grain corridor
- Aviva to acquire AIG’s UK protection business for consideration of £460m
- Vaudoise selects Guidewire Cloud
- Customer Data Platforms to generate over $70bn in additional consumer spend by 2028 globally expired
- IDF Implementation Update: Inclusive Insurance in Kenya expired
- Newslink Global Insurance Trends-Editor's Weekly Highlights expired
- United Nations Capital Development Fund and Sustainable Markets Initiative Insurance Task Force partner to scale insurance access for climate-vulnerable countries expired
- Gallagher Re launches the first in a series of Gray Rhino research papers expired
- 2023 North Atlantic Hurricane Season: El Niño Versus SSTs Tug of War continues-Moody's RMS expired
17th September 2023
Aviva to exit Singapore Life joint venture
Trend
Aviva has announced that it has agreed to sell its 25.9% stake in Singapore Life Holdings Pte Ltd(Singlife), together with two debt instruments, to Sumitomo Life for total consideration of £0.8bn(SGD 1.4bn) payable in cash at closing.1,2,3 Sumitomo Life will pay consideration of £0.5bn (SGD 0.9bn) for Aviva’s equity stake and £0.3bn(SGD 0.5bn) for the two debt instruments. Sumitomo Life is currently a 23.2% shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy.
Amanda Blanc, Group ceo of Aviva, said:“This is a good outcome for Aviva. The transaction further simplifies the business and we are in a very strong position to build on our trading momentum in the UK, Ireland and Canada.”
In 2022, Singlife contributed £17m to Aviva’s operating profit4 The combined carrying value of the equity stake and debt holdings 30th June 2023. The transaction would have increased Aviva’s Solvency II shareholder surplus as at 30th June 2023 by £0.4bn and the Solvency II shareholder ratio by c.8 percentage points. It would have increased centre liquidity by £0.8bn The equity value represents a multiple of 2.2x Solvency II Unrestricted Tier 1 capital as at June 2023.
Aviva’s exit from the Singlife joint venture represents a further step in the simplification of Aviva’s footprint following the international disposal programme completed in 2021. It is also consistent with the group’s ambition to focus on its capital-light business units. Aviva sold its majority stake in Aviva Singapore to a consortium led by Singlife in 2020.
The disposal proceeds will be considered alongside Aviva’s existing capital management framework. Under this framework, any surplus capital is available for reinvestment in the business, bolt-on M&A, and/or additional returns to shareholders.
The transaction is subject to customary closing conditions, including regulatory approvals where required, and is expected to complete in Q4 2023.
Aviva Trends(1,098 articles)
Mitsui Sumitomo Trends(182 articles)
Singapore Life Trends(3 articles)