US insurer, Aflac, has bought a $20m minority stake in Singapore Life and announced plans for a reinsurance agreement with the Asian insurtech.
As part of the investment, Aflac’s subsidiary, American Family Life Assurance Company of Columbus, will also seal a reinsurance agreement of undisclosed size with Singapore Life, covering some protection products.
The transaction would help Aflac understand southeast Asian markets better while seeking “potential growth opportunities,” said Aflac’s executive vice president and chief financial officer Frederick Crawford.
The transaction also demonstrated a “measured approach” of expanding business “with limited capital at risk,” said Crawford.
CEO of Singapore Life Walter de Oude added: "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.”
A fortnight ago Aflac was the quarry, not the hunter, of strategic M&A when Japan Post Holdings Company (JPHC) announced its intent to buy a 7% stake in the US firm.