SUMITOMO Life Insurance is nearing a deal to buy TPG’s stake in Singapore Life Holdings as the Japanese insurer seeks to bolster its presence in South-east Asia, according to sources familiar with the matter.

The companies are hammering out the details of a transaction that could value the closely held Singaporean insurer known as Singlife at S$4 billion to S$5 billion, the sources said, asking not to be identified because the matter is private. Other minority investors may also tag along on the disposal, which would allow Osaka-based Sumitomo Life to wholly own Singlife, the sources said.

Talks are at an advanced stage and a deal could be announced as early as Friday (Dec 22), the sources said. A representative for Sumitomo Life did not have an immediate comment, while TPG did not immediately respond to requests for comment.

TPG had been working with a financial adviser on the potential sale of its 35 per cent stake in Singlife, Bloomberg News reported last month.

Sumitomo Life last month increased its stake in Singlife to 27 per cent from 23.2 per cent by buying S$180 million of new shares. Sumitomo in September also agreed to buy the 25.9 per cent stake in Singlife held by UK-based Aviva for S$900 million. Singapore is a key market within its growth strategy in southeast Asia, the Japanese insurer said at the time. That deal is pending regulatory approval.

Established in 1907, closely held Sumitomo Life had about 35.2 trillion yen (S$328 billion) in total assets as at the end of March, according to its website. It counted more than 44,400 employees.

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Singlife traces its roots back to an insurer founded in 2014, which later teamed up with TPG and Sumitomo to buy a majority stake in Aviva’s Singaporean business in 2020 for about S$2.7 billion.

Singlife is the exclusive insurance provider for the city-state’s Ministry of Defence, Ministry of Home Affairs, and Public Officers Group Insurance Scheme. It had total assets of S$14.4 billion and gross premiums of S$3.5 billion at the end of 2022, according to a September press release.

Founded in 1992, Fort Worth, Texas-based TPG is an alternative asset manager with about US$212 billion in assets under management, according to its website. Its investing strategy includes private equity, credit and real estate among others. BLOOMBERG