British insurance company Aviva plc has agreed to sell its 25.9% stake in financial services company Singapore Life Holdings (Singlife) to Sumitomo Life Insurance Company in a cash deal worth S$ 1.4 billion. The transaction is expected to close in Q4 2023.

Sumitomo Life is currently a 23.2% shareholder in Singlife and sees Singapore as a key market within its overall Southeast Asia strategy.

Aviva sold its majority stake in Aviva Singapore to a consortium led by Singlife in 2020. The insurer said that its exit from the Singlife joint venture is part of its plan to simplify its footprint and focus on its capital-light business units.

The disposal proceeds will be used to reinvest in the business, for bolt-on M&A, or to return to shareholders.

Singlife contributed £17 million (S$ 28.9 million) to Aviva’s operating profit in 2022.

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.”