UK insurer Aviva has agreed to sell a majority stake in its Singapore business for £1.6 billion to a consortium led by insurtech Singlife.
In Singapore, the new business will be initially branded as Aviva Singlife.
The £1.6 billion Aviva will recieve includes £1.2 billion in cash and marketable securities, £143 million in vendor finance notes and a 25% equity shareholding in the new group.
Customers and partners of Aviva Singapore will continue to deal with Aviva as usual and there is no impact to customer policies.
Aviva Investors’ operations and clients in Asia will not be impacted by this transaction.
The proceeds will be used to bolster Aviva’s central liquidity and will be considered as part of Aviva’s broader capital management and debt reduction objectives.
The Singlife consortium includes leading global private equity investor TPG, which will become the largest shareholder in the new group upon completion, Sumitomo Life, a leading Japanese insurer, and other existing Singlife shareholders.