V2Y Corporation Ltd (V2Y), formerly known as Synagie Corporation Pte Ltd and Synagie Corporation Ltd, has issued a non-binding letter of offer to acquire either all, or a substantial percentage of, a renowned insurance company’s general insurance business in Singapore.
V2Y expects the agreement, to be determined and agreed upon by both parties, to be approximately SG$20 million, subject to satisfactory due diligence, an independent valuation report, and finalised terms in the definitive agreement.
The general insurance market in Singapore is expected to grow from SG$4.4 billion in 2020 to SG$5.6 billion in 2025 in terms of gross written premium (GWP), representing a 5% compound annual growth rate (CAGR), according to a study by GlobalData.
After the disposal of its e-commerce business segment in November 2020, V2Y decided 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 expects the acquisition to provide its current insurtech business with cost and revenue synergies and enable it to build on its insurance ambition as it continues to expand the business by extending existing offerings and new products to its brand partners, channel partners, and end-consumers.
“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,” said V2Y CEO Ong Shen Chieh.
