V2Y acquires general insurance business for $14.87m
The acquisition will also boost the firm’s insurtech business.
Singapore Exchange Catalist-listed V2Y Corporation Ltd has issued a non-binding letter of offer to acquire all or a substantial percentage of a local renowned insurance firm’s general insurance business for SG$20m ($14.87m).
This move will allow the group to finally build on its ambition to enter the insurance market as well as provide cost and revenue synergies for its insurtech business.
The name of the insurance business to be acquired is yet to be released.
In 2020, V2Y disposed of its e-commerce and e-logistics segments to focus on its insurtech business, providing third-party administration and value-added services to help its brand partners in the computer, communication and consumer electronics sector manage and execute their extended warranty and accidental damage protection programmes
The group plans to take a slice out of the growing general insurance market in Singapore, which is projected to grow from S$4.4b ($3.27b) in 2020 to S$5.6b ($4.16b) in 2025, according to a study published by GlobalData.
“As economic activities recover and gather momentum in Singapore and the region, and international borders open further, demand for general insurance is expected to rise. We expect the industry’s growth trajectory to pick up in the coming years, thanks to the digitalisation wave, better product innovation, and an increase in infrastructure development projects. These trends will benefit our Insurtech business,” V2Y chief executive officer, Ong Shen Chieh, said.
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