This sale marked a continuation of Aviva’s strategy to streamline its operations and concentrate on capital-light business units. Credit: chrisdorney/Shutterstock.

Aviva expects to receive an additional £80m (S$135m) in proceeds from the sale of its stake in Singapore Life Holdings (Singlife).

In September this year, the UK insurer reached an agreement to divest its 25.9% stake in Singlife, along with two debt instruments, to Sumitomo Life Insurance Company (Sumitomo Life).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Japan-based Sumitomo Life agreed to pay £500m for Aviva’s equity stake and £300m for the two debt instruments.

Now, Aviva expects to receive £930m from the divestiture, which is expected to complete in the first quarter of 2024.

Aviva plans to channel the extra funds into reinvestment, rewarding investors, or pursuing mergers and acquisitions.

This sale marked a continuation of Aviva’s strategy to streamline its operations and concentrate on capital-light business units, following its significant divestment in Aviva Singapore two years prior.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

At the time of the announcement, Aviva group CEO Amanda Blanc said: “This [Singlife stake sale] 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.”

The additional £80m comes after Sumitomo Life agreed to purchase the 35.48% Singlife stake owned by asset manager TPG Capital in a deal valued at $1.2bn.

For Sumitomo Life, the deals form part of its attempts to boost revenue from its international operations and fortify the sustainability of its business.

Payment of the additional proceeds to Aviva is subject to conclusion of the transaction between TPG and Sumitomo Life.

Currently, both TPG and Aviva deals are subject to receipt of regulatory approval and a few other closing requirements.