Aviva to exit Singlife joint venture

• Aviva to exit Singlife joint venture for total consideration of £0.8 billion, including sale of debt instruments^1,2,3
• Transaction further simplifies the group's geographic footprint and supports the focus on capital-light business units

Aviva plc ("Aviva") today announces that it has agreed to sell its 25.9% stake in Singapore Life Holdings Pte Ltd ("Singlife"), together with two debt instruments, to Sumitomo Life Insurance Company ("Sumitomo Life") for total consideration of £0.8 billion (SGD 1.4 billion) payable in cash at closing.^1,2,3 Sumitomo Life will pay consideration of £0.5 billion (SGD 0.9 billion) for Aviva's equity stake and £0.3 billion (SGD 0.5 billion) for the two debt instruments. Sumitomo Life is currently a 23.2% shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy.

Amanda Blanc, Group Chief Executive Officer of Aviva, said:

"This is a good outcome for Aviva. The transaction further simplifies the business and we are in a very strong position to build on our trading momentum in the UK, Ireland and Canada."

In 2022, Singlife contributed £17 million to Aviva's operating profit.⁴ The combined carrying value of the equity stake and debt holdings contributed £729 million to Aviva's IFRS 17 net asset value as at 30 June 2023. The transaction would have increased Aviva's Solvency II shareholder surplus as at 30 June 2023 by £0.4 billion and the Solvency II shareholder ratio by c.8 percentage points.¹ It would have increased centre liquidity by £0.8 billion.¹ The equity value represents a multiple of 2.2x Solvency II Unrestricted Tier 1 capital as at June 2023.

Aviva's exit from the Singlife joint venture represents a further step in the simplification of Aviva's footprint following the international disposal programme completed in 2021. It is also consistent with the group's ambition to focus on its capital-light business units. Aviva sold its majority stake in Aviva Singapore to a consortium led by Singlife in 2020.

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 transaction is subject to customary closing conditions, including regulatory approvals where required, and is expected to complete in Q4 2023.

-ENDS-

Enquiries:

Media:

Andrew Reid +44 (0)7800 694 276

Sarah Swailes +44 (0)7800 694 859

Marion Fischer +44 (0)7800 693 219

Analysts:

Rupert Taylor Rea +44 (0)7385 494 440

Michael O'Hara +44 (0)7837 234 388

About Singlife

The life insurance joint venture was formed following the merger of Singlife and Aviva Singapore in 2020, bringing together Aviva's scale and leading franchise with Singlife's innovative and digitally focused capabilities.

Notes to editors:

1. Using GBP/SGD spot rate of 1.70 as at 11 September 2023.
2. This comprises both the SGD 260 million reset subordinated perpetual capital securities issued by Singlife and the SGD 250 million fixed rate unsecured loan notes issued by Abbey Life Holdings Ltd. Both were issued to Aviva Group Holdings Limited as part of the consideration payable on disposal of Aviva's majority stake in Aviva Singapore, completed in November 2020.
3. Prior to completion of the transaction, certain of Singlife's shareholders will have (i) the pro rata right to acquire Aviva's equity stake pursuant to a right-of-first-refusal; and/or (ii) the right to sell their Singlife shares to Sumitomo Life at the agreed per share price. However, this will not impact upon the ultimate disposal of Aviva's equity stake.
4. Operating profit on an IFRS 17 basis.

• We are one of the UK's leading Insurance, Wealth & Retirement businesses and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
• We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we'll be there to put it right.
• We have been taking care of people for more than 325 years, in line with our purpose of being 'with you today, for a better tomorrow'. In 2022, we paid £23.2 billion in claims and benefits to our customers.
• Aviva is a market leader in sustainability. In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
• While we are working towards our sustainability ambitions, we acknowledge that we have relationships with businesses and existing assets that may be associated with significant emissions. More information can be found at https://www.aviva.com/sustainability/climate/
• Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
• As at 30 June 2023, total Group assets under management at Aviva were £358 billion and our estimated Solvency II shareholder capital surplus was £7.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
• For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
• The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
• You can follow us on:
  • Twitter: www.twitter.com/avivaplc/
  • LinkedIn: www.linkedin.com/company/aviva-plc
  • Instagram: www.instagram.com/avivaplc
• For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

Attachments

• Original Link
• Original Document
• Permalink

Disclaimer

Aviva plc published this content on 13 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2023 06:28:59 UTC.