Sumitomo Life to Provide $132 Million Capital Injection into Singlife, Brings Total Shareholding to Over 27% after Recently Acquired 25.9% Shareholding from Aviva Group for $1 Billion
9th November 2023 | Hong Kong
Sumitomo Life Insurance Company is providing $132 million capital injection (S$179,999,996) into Singlife, bringing total shareholding of Singlife to over 27% after recently acquired 25.9% shareholding from Aviva group for $1 billion (subject to closing & regulatory approval). Singlife: “The capital injection will be used to support business growth. Singlife’s financial strength serves as a bedrock for its continued growth strategy, building on its comprehensive suite of insurance, employee benefits, and savings products and services. Complementing this portfolio are investment and advisory solutions through the GROW with Singlife platform, and the Singlife Account and app. The issue comprises 23,684,210 new shares, representing 4.92% of the increased share capital of Singapore Life Holdings Pte Ltd (Singlife). The share capital of Singlife and total issued shares have been increased from S$2,078,423,573.9 to S$2,258,423,569.9 and from 458,044,338 to 481,728,548 respectively. Following the capital injection on 7 November 2023, Sumitomo Life holds 27.001% of Singlife.” In September 2023, UK insurance group Aviva announced to sell SingLife 25.9% stake and 2 debt instruments to Sumitomo Life Insurance Company for $990 million (£800 million), with Sumitomo Life Insurance Company total SingLife shareholdings increasing from 23.2% to 49.1%. More info below:
“ Sumitomo Life to Provide $132 Million Capital Injection into Singlife, Brings Total Shareholding to Over 27% after Recently Acquired 25.9% Shareholding from Aviva Group for $1 Billion “
UK Insurance Group Aviva Sells SingLife 25.9% Stake & Debt Instruments to Sumitomo Life Insurance Company for $990 Million, Sumitomo Life Insurance Company Total SingLife Shareholdings Increased from 23.2% to 49.1%
16th September 2023 – UK insurance group Aviva has announced to sell SingLife 25.9% stake and 2 debt instruments to Sumitomo Life Insurance Company for $990 million (£800 million), with Sumitomo Life Insurance Company total SingLife shareholdings increasing from 23.2% to 49.1%. Amanda Blanc, Group CEO of Aviva: “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.” More info below:
UK Insurance Group Aviva Sells SingLife 25.9% Stake & Debt Instruments to Sumitomo Life Insurance Company for $990 Million
13rd September 2023 – Aviva plc (“Aviva”) today announces 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 Insurance Company (“Sumitomo Life”) for total consideration of £0.8 billion (SGD 1.4 billion) payable in cash at closing. Sumitomo Life will pay consideration of £0.5 billion (SGD 0.9 billion) for Aviva’s equity stake and £0.3 billion (SGD 0.5 billion) 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.
In 2022, Singlife contributed £17 million to Aviva’s operating profit. The combined carrying value of the equity stake and debt holdings contributed £729 million to Aviva’s IFRS 17 net asset value as at 30 June 2023. The transaction would have increased Aviva’s Solvency II shareholder surplus as at 30 June 2023 by £0.4 billion and the Solvency II shareholder ratio by c.8 percentage points. It would have increased centre liquidity by £0.8 billion. 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.
About Singlife
The life insurance joint venture was formed following the merger of Singlife and Aviva Singapore in 2020, bringing together Aviva’s scale and leading franchise with Singlife’s innovative and digitally focused capabilities.
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