AMTD Digital acquires insurtech startup PolicyPal

DIGITAL banking hopeful AMTD Group on Thursday announced that its digital arm, AMTD Digital, has acquired Singapore insurtech startup PolicyPal for an undisclosed sum.

PolicyPal will serve as AMTD Digital's "key operating vehicle" to develop and expand in the region's insurtech sector, said the group in a statement. This is in line with AMTD's overall goal to build an insurtech platform across Asia.

The group said the latest acquisition is part of its "fusion-in" strategy, that is, "swapping equity interests with promising fintech players, whereby AMTD Digital will subsequently hold a majority stake, and commit resources and (an) open network to groom the entrepreneurs".

Fintechs acquired by AMTD will be able to tap the group's ecosystem to "expedite their business growth". The group said it is connected to multi-servicing platforms and products, investors network and institutional strengths, capital markets expertise from private to public financing solutions, as well as other resources across different sectors and industries in the Asia-Pacific region and beyond.

AMTD further noted that its latest deal with PolicyPal is the first controlling-stake acquisition in South-east Asia's insurtech industry since the Covid-19 outbreak. 

Calvin Choi, AMTD Group's chairman and chief executive officer (CEO) and AMTD Digital's chairman, will be PolicyPal's chairman. PolicyPal founder Val Yap will continue to serve as the CEO. 

"Together, we will continue building out and reinforcing AMTD's commitment to developing an innovative and inclusive insurance platform across Asia. We are especially glad to continue strengthening our digital talent pool in Singapore, and we have full confidence in (Singapore's) global leading role in fintech and innovation," said Mr Choi. 

Ms Yap said the partnership with AMTD Digital will enable PolicyPal to offer more affordable and accessible products, reach more people and expand into more markets. PolicyPal works with some 30 global insurance companies and has US$3 billion (S$4.2 billion) sum assured coverage on its platform.

AMTD Group is also gunning for a digital wholesale bank licence in Singapore through a consortium formed with SP Group, Xiaomi Finance and Funding Societies. 

AMTD International, a subsidiary of AMTD Group, made its trading debut on the Singapore Exchange's mainboard earlier in April. It shares closed up S$0.10 to S$16.60 on Thursday.