Singapore — Leading insurance cooperative in Singapore NTUC Income has announced that it has decided to be corporatized and be a company governed by the Company Act. As part of the proposed corporatization exercise, Income will transfer its existing insurance business and assets to the new company (NewCo), Income Insurance Limited, and, thereafter, the co-op will be liquidated.
The insurance co-op stated that due to market shifts and rising competitors, the proposal was initiated to gain capital and operational flexibility as well as create a foothold in the future of the insurance industry.
Ronald Ong, Income’s chairman, commented on the proposition, saying that he sees corporatization as a strategic and essential pivot for Income to scale its business quicker locally and regionally, investing in growth channels and markets, as well as digital capabilities to effectively compete more equitably with other insurers.
“Since its inception, Income has consistently shown agility to adapt and stay relevant amid evolving customer needs and market changes over the years. By embarking on the corporatization exercise, Income is demonstrating foresight to be future-ready and sustainable in an increasingly dynamic and complex insurance landscape,” Ong said.
Andrew Yeo, Income’s chief executive, said, “Income’s purpose to improve Singaporeans’ financial well-being will remain a beacon for our way of business. Thus, shifting from a co-operative to a corporate entity will have no bearing on our commitment to deliver positive customer impact through our products, services, and people.”
The proposed corporatization exercise is expected to be completed in the second half of 2022, and will only be changing Income’s legal form. There will be no effects on Income’s organizational structure and business operations — save that NewCo will take the place of the co-op, existing policy, and benefit coverage for clients. Income’s distribution channels and business partners are also expected to continue.