Zurich has entered into an agreement with Singapore’s newest life insurance company to acquire its Zurich Life Singapore business portfolio.
Under the agreement, Singapore Life will become responsible for all Zurich Life Singapore’s customers’ policies, totalling approximately SGD$6bn (USD$4.5bn) of coverage for life, critical illness and disability benefits.
The announcement follows Zurich Life Singapore’s closure to new business in December 2015 and does not affect any of Zurich’s other life or commercial insurance businesses in Singapore, including Zurich International Life (Singapore branch) and Zurich Insurance Company (Singapore branch), the company said.
The transfer of all Zurich Life Singapore’s policies to Singapore Life is expected to be completed in the first half of this year, subject to confirmation by the High Court.
CEO of Zurich Life Singapore, 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. We are confident our customers will continue to enjoy a high level of service and security with Singapore Life. We remain fully committed to growing our commercial insurance business in Singapore and maintaining excellent customer service for our international life customers who are not impacted by the transfer.”
CEO of Singapore Life, Walter de Oude added: “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.
“Bringing this portfolio of customers into that of Singapore Life’s is exactly in line with our strategy to accelerate quickly in becoming a preferred Singaporean insurance company for our customers’ needs. With the strong support from our shareholders, we are confident that this agreement will demonstrate Singapore Life's aspirations for significant growth and positively contribute to Singapore’s insurance industry and beyond. We will continue to look for further acquisitions over time.”