Aviva Expects £80 Million Boost in Singlife Sale Proceeds Due to Sumitomo Deal

Aviva Expects £80 Million Boost in Singlife Sale Proceeds Due to Sumitomo Deal

(IN BRIEF) Aviva plc has announced its anticipation of an additional £80 million in proceeds from the sale of its stake in Singapore Life Holdings Pte Ltd (Singlife) to Sumitomo Life Insurance Company, as Sumitomo Life agreed to acquire TPG’s equity stake in Singlife in a separate transaction. This development increases Aviva’s expected total proceeds to approximately £930 million. The sale, including the disposal of two debt instruments, was first disclosed in September 2023 and is slated for completion in Q1 2024, pending customary closing conditions and regulatory approvals.

(PRESS RELEASE) LONDON, 27-Dec-2023— /EuropaWire/ — Aviva plc (“Aviva”) today announces that it expects to receive approximately £80m1 (SGD 0.1 billion) of additional proceeds relating to the sale of Aviva’s stake in Singapore Life Holdings Pte Ltd (“Singlife”), together with two debt instruments, to Sumitomo Life Insurance Company (“Sumitomo Life”). The additional proceeds are the result of a separate transaction whereby Sumitomo Life has agreed to purchase TPG’s2 equity stake in Singlife. Receipt of the additional proceeds is conditional upon the completion of the separate transaction between Sumitomo Life and TPG.

The revised total proceeds that Aviva expects to receive are approximately £930m1 (SGD 1.6 billion). 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 disposal of Aviva’s stake in Singlife, including the sale of two debt instruments, was announced on 13 September 2023 and remains subject to customary closing conditions, including regulatory approvals, and is expected to complete in Q1 2024.

References:

1.       Using GBP/SGD spot rate of 1.68 as at 22 December 2023.

2.       The transaction, subject to closing conditions and regulatory approval, is with Abbey Life Holdings Ltd, owned by TPG Inc.

Notes to editors:

• We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in India, China and Singapore.
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• As at 30 June 2023, total Group assets under management at Aviva Group were £358 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2023 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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SOURCE: AVIVA