V2Y Enters Non-Binding Agreement to Acquire General Insurance Business Portfolio
● Acquisition will provide its Insurtech business with cost and revenue synergies, and allow the Group to build on its insurance ambitions
● V2Y disposed of its e-commerce and e-logistics segments in 2020 with the aim of focusing on its Insurtech business
● Singapore’s general insurance market forecast to grow from S$4.4 billion in 2020 to S$5.6 billion in 2025, in terms of gross written premium, representing CAGR of 5%: GlobalData
SINGAPORE - Media OutReach - 22 February 2022 - V2Y Corporation Ltd. (SGX: V2Y) announced today that it has issued a non-binding letter of offer to acquire all or a substantial percentage of a local renowned insurance company’s general insurance business. The purchase consideration, which will be determined and agreed upon by both parties, is expected to be approximately S$20 million, subject to satisfactory due diligence, an independent valuation report and finalised terms in the definitive agreement. The move, which provides its current Insurtech business with cost and revenue synergies, will allow the Group to build on its insurance ambitions.
The Group’s Insurtech business segment provides 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. Leveraging on its technology platform and ecosystem, the Group aims to expand its Insurtech business by extending existing offerings and new products to its brand partners, channel partners and end-consumers.
The general insurance market of Singapore is expected to grow from S$4.4 billion in 2020 to S$5.6 billion in 2025, in terms of gross written premium (GWP), representing a compound annual growth rate (CAGR) of 5%, according to a study by GlobalData.
The resumption of economic activities, success of COVID-19 vaccination programs, and relaxation on travel restrictions are among the factors that will drive the growth of the general insurance sector in Singapore, the study said.
V2Y Chief Executive Officer, Mr Ong Shen Chieh, said: “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.”
About V2Y Corporation Ltd
V2Y was incorporated in Singapore on 28 June 2017 under the name of Synagie Corporation Pte. Ltd., and subsequently renamed Synagie Corporation Ltd. on 27 June 2018 in connection with its listing on SGX Catalist in 8 August 2018. On 12 November 2020, the Company’s name was changed to V2Y Corporation Ltd. Following the disposal of its e-commerce business segment in November 2020, the Group will now focus on its Insurtech business providing third-party administration services for its multinational customers in the computer, communications and consumer electronics sector.
The issuer is solely responsible for the content of this announcement.