British tycoon buys controlling stake in fintech Singapore Life

Singapore

FINTECH outfit Singapore Life has found a controlling shareholder in British tycoon Michael Spencer, who invested a further US$52.8 million into the Singapore-based, online-only insurer late this week, Singapore Life told The Business Times on Friday.

Mr Spencer, through his private investment vehicle IPGL, bought another 33.8 per cent stake in the insurtech firm from Chong Sing Holdings, a Hong Kong-based financial group.

The purchase brought his total holdings to 63.2 per cent, said IPGL, which also announced the deal on Thursday evening London time. The latest investment values Singapore Life at US$156 million.

IPGL said the investment fits with its strategy of investing in "high-growth fintech businesses" and supporting them through their development.

IPGL said it was prepared to invest in further investment rounds as Singapore Life expands.

Mr Spencer is known for making his fortunes from setting up UK broker Nex Group, where he once held an 18 per cent stake, until Nex was sold to the CME Group for £3.9 billion (S$6.8 billion) in March 2018.

Singapore Life in January acquired the business portfolio of Zurich Life Singapore, taking over all the policies of Zurich Life Singapore's customers, which amounted to about S$6 billion in coverage for life, critical illness and disability benefits.

Singapore Life operates entirely digitally; its customers apply directly for life insurance protection online.

The insurtech was started by former HSBC executive Walter de Oude.

He told The Business Times: "The success of Singapore Life has drawn the attention of serious investor capital looking to participate in Singapore Life's growth story. This additional investment by IPGL paves the way for a series of transactions that will further grow its capital base and further enable its growth strategy."

In a regulatory filing from Hong Kong's Chong Sing Holdings, the group said Singapore Life recorded an unaudited post-tax profit of about US$4.6 million for the nine-month period ended Sept 30.

Chong Sing said the sale of its stake in Singapore Life translated to a gain of about US$37 million. It said the gain is estimated on the difference between the transaction price and the net asset value of the disposed interest of Singapore Life, after deducting the transaction costs and the related tax attributable to the sale.

In a statement from IPGL, Mr Spencer said: "We are extremely impressed by what Walter and his team have achieved in a short space of time and pleased that the opportunity arose to increase our investment in Singapore Life.

"This is exactly the type of disruptive business we like to invest in, one that is making full use of technology to deliver key financial services to customers."

IPGL said the transaction has been approved by the Monetary Authority of Singapore.