U.S insurer Aflac Incorporated has announced that it plans to enter into a reinsurance agreement on certain protection products as part of a $20 million minority equity investment in Singapore Life Pte. Ltd.
American Family Life Assurance Company of Columbus, an operating subsidiary of Aflac, will enter into the arrangement with Singapore Life, a digitally-focused life insurance company based in Singapore.
“We are excited about this opportunity to invest in a new, digitally-focused insurance company,” said Max K. Brodén, Aflac’s Treasurer and Head of Corporate Development.
“Singapore Life is an excellent example of how technology can be leveraged to provide better financial solutions to its clients through both direct, via singlife.com, and traditional channels,” he continued. “We are excited to be part of their growth story, and we look forward to a successful relationship.”
Frederick J. Crawford, Executive Vice President and Chief Financial Officer at Aflac, also commented on the announcement: “As a leader in voluntary health and life insurance in both the U.S. and Japan, we believe we can provide valuable insight to Singapore Life while at the same time working closely with Singapore Life’s strong management team to better understand other Southeast Asian markets for potential growth opportunities.
“This strategic investment and relationship with Singapore Life serves as a good example of Aflac strategy to leverage digital technology to enter new markets or lines of business in a measured approach with limited capital at risk.”
Walter de Oude, Chief Executive Officer (CEO) of Singapore Life, added: “We are excited to have Aflac as both an investor in Singapore Life and a partner, given the strength of Aflac’s brand, the credibility that it brings, and their leadership in the areas of cancer insurance and other supplemental medical policies.
“We look forward to working with Aflac as we continue to grow Singapore Life’s range of financial services that our customers are seeking.”
Earlier this month, Japan Post Holdings, the Tokyo-headquartered postal and financial conglomerate, announced that it planned to acquire a 7% stake in Aflac.
