American insurance company Aflac has announced a $20m minority equity investment in digital life insurance company Singapore Life.
Singapore Life is claimed to be the first local independent life insurance firm fully licensed by the Monetary Authority of Singapore since 1970.
The company acquired Zurich Life Singapore’s business portfolio and claims to have achieved over SGD6.6bn ($4.84bn) in life insurance coverage till now.
Aflac ‘ss subsidiary American Family Life Assurance Company of Columbus is planning to enter into a reinsurance agreement on several protection products with Singapore Life.
Aflac executive vice president and chief financial officer Frederick Crawford said: “As a leader in voluntary health and life insurance in both the US 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.”
Singapore Life offers life insurance and savings products by using technology to deliver on digital-first journeys. The company claims that it offers life insurance products with convenience, transparency and accessibility.
Singapore Life CEO Walter de Oude said: “We are excited to have Aflac as both an investor in Singapore Life and a partner, given the strength of Aflac’s brand, the credibility that it brings, and their leadership in the areas of cancer insurance and other supplemental medical policies. We look forward to working with Aflac as we continue to grow Singapore Life’s range of financial services that our customers are seeking.”
Last month, Japan Post had further increased its stake in Aflac by acquiring 7% more stake from the open market. Through this alliance, the two companies have now renewed their mutual commitment to the cancer insurance marketplace in Japan.
As part of their alliance, Japan Post will continue to offer Aflac’s cancer products through more than 20,000 postal outlets across Japan, as well as via Japan Post Insurance and its 76 directly managed sales offices.
The companies will collaborate to promote cancer awareness and education, cancer screening, and philanthropic sponsorship of cancer-related causes in Japan.