The transaction is subject to customary closing conditions, including regulatory approval, and is expected to complete by January 2021.
"The combination brings together AVIVA Singapore's scale and leading franchise with SINGLIFE's innovative and digitally focused capabilities. In Singapore, the new business will be initially branded as AVIVA SINGLIFE".
The SINGLIFE consortium includes TPG, a leading global private equity investor, which will become the largest shareholder in the new group upon completion, SUMITOMO Life, a leading Japanese insurer, and other existing SINGLIFE shareholders.
On completion, AVIVA will receive SGD 2.7 billion (GBP 1.6 billion) in consideration, which is comprised of SGD 2.0 billion (GBP 1.2 billion) in cash and marketable securities, SGD 250 million in vendor finance notes and a 25% equity shareholding in the new group.
The transaction would have increased AVIVA plc's Net Asset Value at 30 June by GBP 0.7 billion, strengthened Solvency II capital surplus by GBP 0.5 billion and increased the Group Solvency ratio on a shareholder basis by approximately 4 percentage points. In 2019, AVIVA Singapore's IFRS profit after tax was GBP 83 million and it remitted GBP 46 million cash to the group. The gross assets of AVIVA SINGAPORE were