Singapore’s newest life insurer Singapore Life has reached an agreement to acquire the business portfolio of Zurich Life Singapore.

Pursuant to the agreement, Singapore Life will assume full responsibility for all Zurich Life Singapore’s customers’ policies, totalling about SGD6bn ($4.5bn) of coverage for life, critical illness and disability benefits.

The latest agreement follows Zurich Life Singapore’s closure to new business in December 2015.

However, the deal does not affect any of Zurich’s other life or commercial Insurance businesses in Singapore, including Zurich International Life Limited (Singapore Branch) and Zurich Insurance Company Ltd. (Singapore Branch).

Subject to confirmation by the Singapore High Court, the transfer of all Zurich Life Singapore’s policies to Singapore Life is scheduled to be concluded during the first half of 2018.

Following the transfer to Singapore Life, all policyholders will continue to have the existing terms and conditions of their policies upheld and will avail the same service level as existing Singapore Life customers.

Singapore Life CEO Walter de Oude said: “Singapore Life is thrilled to offer a new home to Zurich Life Singapore’s customers, and to continue enhancing their experience of owning insurance for many years to come.

“Singapore Life is built on the belief that technology will create a better kind of insurance company. Everybody needs life insurance and Singapore Life, being a digital insurer, makes it a better and easier experience.”

Zurich Life Singapore CEO David Kneale said: “This decision is in line with Zurich’s strategy to optimise its portfolio and geographical footprint, and follows an extensive process to ensure that existing policyholder terms and conditions are safeguarded.”