After Income-Allianz deal, more consolidation could come for Singapore’s insurance industry: Analysts

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Global investors are interested in Singapore and Southeast Asia, says one market observer.

Singapore Life Holdings became a fully owned subsidiary of Sumitomo Life, when it bought Aviva’s stake in Singlife.Senior director of insurance at Fitch Ratings Kanishka de Silva said intense competition in the Singapore insurance market raises the possibility of further consolidation.

When the next acquisition takes place will depend on due diligence, negotiations, market timing and regulatory requirements, he added.But Mr Frank Yuen, a vice president and senior credit officer at Moody’s Ratings, was unsure if the recent deals were part of a larger trend of consolidation. “Both transactions were driven by different motives, and also the specific considerations of the original shareholders,” said Mr Yuen.

CreditSights similarly said it sees competition intensifying, but not to the extent of a reshuffling among the top insurers. Mr Yuen said Income Insurance could tap Allianz’s strength in asset management capabilities to offer more products and take a higher market share.“The insurance business is still really localised depends on the relationship you have built in the past; your agents with their customers," said Mr Yuen.

 

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