1. Why did NTUC Income embark on a corporatisation exercise?
- Over the years, the operating environment of the co-operative, NTUC Income Insurance Co-operative Limited (Co-op) had undergone significant shifts. These included a mature domestic market, evolving regulatory expectations and requirements, as well as increased competition from insurers with extensive distribution scale and access to growth channels and markets locally and regionally. The latter was further compounded by technology players entering the insurance sector and playing to customers’ increasing demand for more diverse and targeted products and digital-first solutions.
- While the Co-op had been agile in responding to these market shifts, it aimed to achieve operational flexibility and access to more strategic growth options through corporatisation in order to compete on equal footing with other insurers in the market and be better placed to address future challenges and to serve customers better.
2. What took place during the corporatisation process
- As part of the corporatisation process, NTUC Income Insurance Co-operative Limited (Co-op) changed its legal form from a co-operative to a corporate entity that is governed by the Companies Act and transferred its whole insurance business (including existing insurance products and policies) to the new corporate entity, Income Insurance Limited (Income).
- The transfer to Income was confirmed by the General Division of the High Court of Singapore on 14 June 2022 and completed on 1 September 2022 via a ‘Scheme of Transfer’ under the Insurance Act of Singapore and other transfer agreements. The Co-op will be liquidated as soon as practicable.
3. Will the new corporate entity continue to offer affordable insurance products?
- The new corporate entity, Income Insurance Limited (Income), is committed to its purpose to empower all Singaporeans, including those who are underserved, to improve their financial well-being and will continue to explore ways to serve customers better. Income remains rooted to extend real care to people in Singapore via its insurance propositions and social causes just like how it was first set up in 1970 to offer insurance protection and to fulfil a genuine social gap in Singapore.
4. How will the new corporate entity operate post corporatisation?
- Corporatisation changes only the legal form of the co-operative, NTUC Income Insurance Co-operative Limited (Co-op) to a corporate entity that is governed by the Companies Act.
- The new corporate entity, Income Insurance Limited (Income), is retaining the current Board and management team of the Co-op, who are continuing to steer and grow Income by leveraging its strong brand equity, purpose and business growth plans.
- Income is also holding the same shareholding in subsidiaries that were previously held by the Co-op.
- NTUC Enterprise (NE) continues to be the majority shareholder of Income, which remains a social enterprise under NE’s network of organisations.
- All existing assets and liabilities, including insurance policies issued by the Co-op, and personal data collected by the latter, had been successfully transferred to Income via a ‘Scheme of Transfer’ under the Insurance Act of Singapore and other agreements entered between the co-operative and Income. All existing policy coverage, benefits and terms remain unchanged.
- Customers can continue to tap on existing service branches, network of advisors, customer support and online portals to assist them on their insurance matters.