British insurer Aviva announced that it has agreed to sell its Singapore operation, Aviva Singapore, to a homegrown rival led by Singapore Life Pte Ltd (Singlife).

The transaction will involve the merger of Aviva Singapore and Singlife to form the new business, Aviva Singlife.

After the merger, Aviva will retain 25 per cent shareholding in the new business.

Other shareholders include TPG, a global private equity investor, Sumitomo Life Insurance Company, and the other existing Singlife shareholders.

As of December 31, 2019, Aviva Singapore had around 1.5 million customers and was managing S$11.8 billion of assets.

For customers of Aviva Singapore, there will be no changes as a result of this announcement to the terms, premiums and fees of policies under the company.

The transaction is subject to regulatory approval, and is expected to complete by January 2021.

After the transaction, Aviva Singapore and Singlife will combine legally, subject to approval by the Singapore courts, targeting the first half of 2021.

Aviva Singapore and Singlife will continue to operate independently until that point.

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Top image via Aviva plc/Flickr