US-based insurer Aflac Incorporated has made a $20m minority investment into InsurTech company Singapore Life.
Alongside the announcement of the investment, Aflac has revealed its operating subsidiary American Family Life Assurance Company of Columbus will enter a reinsurance agreement of certain protection products with Singapore Life.
Singapore Life is a Monetary Authority of Singapore licensed life insurance company, that offers policies digitally and in retail stores. The company has a range of policies available, and the online service allows users to buy and manage their policies at any time and with a financial adviser.
Aflac executive vice president and CFO Frederick Crawford said, “As a leader in voluntary health and life insurance in both the U.S. and Japan, we believe we can provide valuable insight to Singapore Life while at the same time working closely with Singapore Life’s strong management team to better understand other Southeast Asian markets for potential growth opportunities.
“This strategic investment and relationship with Singapore Life serves as a good example of Aflac strategy to leverage digital technology to enter new markets or lines of business in a measured approach with limited capital at risk.”
In 2017, Singapore Life received a $50m Series A funding round, which marked the largest Asian InsurTech investment at the time. Impact Capital picked up a 33.8 per cent stake within the company for a $21.3m investment. Other backers to the round included UK-based IPGL.
Last year, the company acquired Zurich Life Insurance’s business portfolio, which was worth around $4.5bn. Zurich Life Singapore had closed to new business at the end of 2015, but maintained existing contracts, and under Singapore Life, all terms and conditions were maintained.
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