TPG backs $2b carve-out of Aviva Singapore

Aviva will receive S$2 billion in cash and marketable securities, with the rest taking the form of vendor finance notes and a 25% shareholding in the new group, Aviva Singlife. According to a filing, the deal values Aviva Singapore 18.7x its 2019 profit, which came to GPB83 million ($106 million).

The transaction, set to be finalized in January next year, will deliver the consortium a 75% interest in Aviva Singlife, with TPG taking 35%. Japan’s Sumitomo Life, an existing investor in Singlife, is expected to take 20%. Aflac Ventures, Aberdeen Asset Management, and IPGL, all existing Singlife investors, are reportedly taking a combined 20%.

Aviva Singlife will initially use the branding of both companies and is expected to be led by sitting Singlife chairman Ray Ferguson, with Singlife CEO Walter de Oude taking the role of deputy chairman. Aviva Singapore CEO Nishit Majmudar will be appointed CEO of the new company’s Singapore licensed insurance business, according to The Straits Times.

“By joining forces with Aviva Singapore, we are creating a homegrown regional brand that will go far beyond insurance and deliver on these ambitions by creating innovative financial products with intuitive technology and independent advice,” Ferguson was quoted as saying, noting the impact of COVID-19 on consumer adoption of tech-enabled services.

Aflac and Aberdeen invested $33 million in Singlife last year as part of its digitization agenda, noting that lifestyle businesses such as ride-hailing and social messaging apps were increasingly moving toward models involving access insurance products. IPGL joined a $50 million round for Singlife in 2017 alongside Impact Capital, a division of Hong Kong-listed Credit China FinTech Holdings.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Financials
• Buyouts
• Singapore
• TPG Capital
• Aflac Ventures
• Aberdeen Asset Management
• Financial Services
• insurance