Japanese insurer Sumitomo Life announced on Friday its plan to purchase TPG Inc's 35.5 per cent stake in Singapore Life Holdings (Singlife) for S$1.6 billion ($1.21 billion), aiming to enhance its presence in Southeast Asia.

Sumitomo Life is set to acquire shares from all remaining stakeholders in the Singapore insurer, effectively securing the entirety of the company at a valuation of S$4.6 billion. This move follows Sumitomo's earlier acquisition of UK-based Aviva PLC's stake in Singlife.

Having initially invested in Singlife in 2019, Sumitomo Life views Singapore as a pivotal element of its Southeast Asia strategy and anticipates that the transaction will bolster the earnings of its international business portfolio, as stated in a company release.

Singlife, serving as the exclusive insurance provider for Singapore's Ministry of Defence, Ministry of Home Affairs, and Public Officers Group Insurance Scheme, reported total assets of S$14.4 billion at the close of 2022.

Sumitomo Life recently increased its stake in Singlife from 23.2 per cent to 27 per cent by acquiring S$180 million worth of new shares. 

The Osaka-based insurer also expressed its intention to establish a local office in Singapore in April, aiming to strengthen its relationship with Singlife and diversify its presence in the country.

Sumitomo Life, via a statement, highlighted that the acquisition is expected to contribute to increased earnings from its overseas business, enhancing its overall business sustainability.

TPG, based in Texas, is a key player in alternative asset management, overseeing around $212 billion in assets under management, according to data from its website.

(With Reuters Inputs)