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SingLife has 50,000 customers and Aviva has 1.5 million, or 96.8% of the combined customer base.
In spite of this, Aviva will only have 25% equity of the merged entity.
It is clear that Aviva ran into trouble and had to be rescued through a merger with SingLife.
Just like POSB bailed out DBS Bank during the Asian Financial Crisis in 1998 but was structured as a back-door acquisition by DBS Bank.
Customers to have easier access to insurance plans after Singlife-Aviva merger: Singlife CEO
Singlife group CEO Walter de Oude said the combined Singlife and Aviva business will grow its headcount and physical office space. PHOTO: SINGLIFE
PUBLISHED
18 MIN AGO
FACEBOOKTWITTER
Prisca Ang
SINGAPORE - Customers will have easier access to products such as health insurance and long-term investment and savings plans once Aviva and Singapore Life complete the $3.2 billion merger announced late last week.
The pledge came from Singlife group chief executive Walter de Oude, who also told the The Straits Times on Tuesday (Sept 15) that existing policyholder terms and conditions will not be affected.
"All that will happen over time is that the way we engage with customers will become more digital and mobile as the business builds up its capabilities," he noted.
The combined business will also grow its headcount and physical office space, added Mr de Oude, although he could not give details yet.
"We have observed that although customers prefer to have a digital and mobile-first relationship with their financial services provider, they still like to have independent and good quality of financial advice," he said.
"All of our products and services will be geared to direct engagement."
Homegrown Singlife was set up in 2017 and now has 50,000 customers, a number that it said increases by about 450 every day.
The fully licensed direct life insurer offers digital protection and savings solutions through the Singlife Account app, which allows users to withdraw money at any time or spend it through a Singlife Visa debit card.
Besides its Singapore business, the insurer has partnered mobile payments company GCash in the Philippines to roll out micro-insurance products. It also plans to expand to Malaysia, Thailand, Vietnam and Indonesia after the merger with Aviva is complete, said Mr de Oude.
Singlife announced on Friday (Sept 11) that it plans to merge with Aviva Singapore in a deal valued at $3.2 billion, making it the largest insurer in Singapore and one of the largest in South-east Asia. The transaction is expected to complete by January.
Mr de Oude said the move will allow Singlife to take "all of the technological advancement that we have created, combining it with the deep product history, large customer segment and quality advisory capabilities in the Aviva business".
Aviva Singapore had about 1.5 million customers and managed $11.8 billion in assets as at the end of last year.
Mr de Oude noted that Aviva is one of the firms appointed by the Ministry of Health to run severe disability insurance scheme ElderShield. It also offers a group insurance scheme with the Government for national servicemen.
"These suggest a very comprehensive product base in existence," he noted.
"Our job, going forward, is to refine and improve that product base for customers as we evolve the business into a more digitally-embracing organisation."
Singlife, which manages about $7 billion in life insurance coverage, acquired Zurich Life Singapore in 2018.
"The Singlife-Aviva merger is much more complicated and will take some time to integrate... but our experience in the Zurich case suggests we are well equipped to go forward," said Mr de Oude.
Experts said Singlife's latest move bodes well for the business and the insurance sector.
Assistant Professor of Finance Aurobindo Ghosh from Singapore Management University's Lee Kong Chian School of Business said: "This would help them increase scalability in their product suite and reduce cost of operations using insurtech solutions.
"For customers, it will provide a one-stop shop for multiple products in insurance and possibly financial and retirement planning.
He added that the combined entity "might also get increasing returns to scale in terms of cost, which can potentially be passed on to consumers".
Mr Ivan Guan, associate director at financial advisory PromiseLand Independent, said the move will create more brand awareness for Singlife: "The challenge for Singlife is that its name is not well known ... whereas Aviva already has an established presence here.
"When they launch new innovative products in the future, they will probably be more accepted by consumers."
In spite of this, Aviva will only have 25% equity of the merged entity.
It is clear that Aviva ran into trouble and had to be rescued through a merger with SingLife.
Just like POSB bailed out DBS Bank during the Asian Financial Crisis in 1998 but was structured as a back-door acquisition by DBS Bank.
Customers to have easier access to insurance plans after Singlife-Aviva merger: Singlife CEO
Singlife group CEO Walter de Oude said the combined Singlife and Aviva business will grow its headcount and physical office space. PHOTO: SINGLIFE
PUBLISHED
18 MIN AGO
FACEBOOKTWITTER
Prisca Ang
SINGAPORE - Customers will have easier access to products such as health insurance and long-term investment and savings plans once Aviva and Singapore Life complete the $3.2 billion merger announced late last week.
The pledge came from Singlife group chief executive Walter de Oude, who also told the The Straits Times on Tuesday (Sept 15) that existing policyholder terms and conditions will not be affected.
"All that will happen over time is that the way we engage with customers will become more digital and mobile as the business builds up its capabilities," he noted.
The combined business will also grow its headcount and physical office space, added Mr de Oude, although he could not give details yet.
"We have observed that although customers prefer to have a digital and mobile-first relationship with their financial services provider, they still like to have independent and good quality of financial advice," he said.
"All of our products and services will be geared to direct engagement."
Homegrown Singlife was set up in 2017 and now has 50,000 customers, a number that it said increases by about 450 every day.
The fully licensed direct life insurer offers digital protection and savings solutions through the Singlife Account app, which allows users to withdraw money at any time or spend it through a Singlife Visa debit card.
Besides its Singapore business, the insurer has partnered mobile payments company GCash in the Philippines to roll out micro-insurance products. It also plans to expand to Malaysia, Thailand, Vietnam and Indonesia after the merger with Aviva is complete, said Mr de Oude.
Singlife announced on Friday (Sept 11) that it plans to merge with Aviva Singapore in a deal valued at $3.2 billion, making it the largest insurer in Singapore and one of the largest in South-east Asia. The transaction is expected to complete by January.
Mr de Oude said the move will allow Singlife to take "all of the technological advancement that we have created, combining it with the deep product history, large customer segment and quality advisory capabilities in the Aviva business".
Aviva Singapore had about 1.5 million customers and managed $11.8 billion in assets as at the end of last year.
Mr de Oude noted that Aviva is one of the firms appointed by the Ministry of Health to run severe disability insurance scheme ElderShield. It also offers a group insurance scheme with the Government for national servicemen.
"These suggest a very comprehensive product base in existence," he noted.
"Our job, going forward, is to refine and improve that product base for customers as we evolve the business into a more digitally-embracing organisation."
Singlife, which manages about $7 billion in life insurance coverage, acquired Zurich Life Singapore in 2018.
"The Singlife-Aviva merger is much more complicated and will take some time to integrate... but our experience in the Zurich case suggests we are well equipped to go forward," said Mr de Oude.
Experts said Singlife's latest move bodes well for the business and the insurance sector.
Assistant Professor of Finance Aurobindo Ghosh from Singapore Management University's Lee Kong Chian School of Business said: "This would help them increase scalability in their product suite and reduce cost of operations using insurtech solutions.
"For customers, it will provide a one-stop shop for multiple products in insurance and possibly financial and retirement planning.
He added that the combined entity "might also get increasing returns to scale in terms of cost, which can potentially be passed on to consumers".
Mr Ivan Guan, associate director at financial advisory PromiseLand Independent, said the move will create more brand awareness for Singlife: "The challenge for Singlife is that its name is not well known ... whereas Aviva already has an established presence here.
"When they launch new innovative products in the future, they will probably be more accepted by consumers."
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