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From 1 September 2022, we are operating as Income Insurance Limited, a public non-listed company limited by shares. This follows the successful transfer of the insurance business of the co-operative, NTUC Income Insurance Co-operative Limited ("Co-op") to Income Insurance Limited, as part of our corporatisation exercise.
As a corporate entity, we are better positioned to access strategic growth options and have greater operational flexibility to serve our customers better. We will stay true to our roots and extend real care to Singaporeans via our insurance propositions that support their unique goals and aspirations, as well as social causes that help build a stronger community - just like how we had done so from the get-go.
Operationally, there is no change to your engagement with us. Our service branches, network of advisors, customer support and online portals continue to be available to provide you with any information or assistance that you may require regarding your insurance matters.
Follow our milestones or view the FAQs below for more information.
Capital Reduction Announcement
Proposed Capital Reduction Exercise
SINGAPORE, 2 May 2023 – Following completion of the distribution in specie of shares in Income Insurance Limited (“Income Insurance”) to shareholders of NTUC Income Insurance Co-operative Limited, Income Insurance today submitted an application to the General Division of the High Court of Singapore (“High Court”) for approval for a capital reduction exercise (“Proposed Capital Reduction”). The Proposed Capital Reduction seeks to return excess capital of approximately S$43 million in aggregate to shareholders of Income Insurance on a pro rata basis.
The Proposed Capital Reduction will translate to a one-off distribution of around S$0.40 cash per share to all Income Insurance shareholders as at the date on which the order of the High Court approving the Proposed Capital Reduction is lodged with the Registrar of Companies (“Books Closure Date”). There will be no cancellation of any Income Insurance shares and there will be no change in the number of shares in Income Insurance held by Income Insurance shareholders as a result of the Proposed Capital Reduction.
The Proposed Capital Reduction is not expected to have any material impact on Income Insurance’s solvency and capital levels, which will remain well above regulatory requirements following the completion of the Proposed Capital Reduction.
While the Proposed Capital Reduction is subject to approval from the High Court, Income Insurance has obtained the necessary approval from the Monetary Authority of Singapore.
The Proposed Capital Reduction is intended to help shareholders with Income Insurance’s transition from a co-operative to a company. Income Insurance will be organising a Shareholders’ Briefing to share more information on the Proposed Capital Reduction (including the estimated Books Closure Date and the date on which payment of the cash distribution is expected to be made^). Details of the Shareholders’ Briefing will be communicated to shareholders in due course.
^subject to High Court’s approval being granted prior to the Shareholders’ Briefing.
Corporatisation Milestone Leading Up to Liquidation of NTUC Income Insurance Co-operative Limited (Co-op)
| Date | Description | Attachment |
| 6 Jan 2022 | Announced Co-op’s corporatisation exercise | NTUC Income Corporatises to Further Strengthen Its Competitiveness for Long-term Growth |
6 Jan 2022 | Informed policyholders about Co-op’s corporatisation exercise | |
14 Jan 2022 | Published Notice of EGM on the Straits Times, Lianhe Zaobao, Berita Harian and Tamil Murasu | |
21 Jan 2022 | Held Infomation Sessions for Co-op’s Institutional and Ordinary members | - |
13 May 2022 | Published Notice of Intention (NOI) in eGazette, The Straits Times, Lianhe ZaoBao, and Income website. Published Scheme of Transfer, Supplemental Scheme and Amendment of Effective Date on Income’s website | Scheme for Transfer of Insurance |
13 May 2022 | Informed policyholders on the NOI and the Scheme documents | |
14 Jun 2022 | Approval of the Scheme of Transfer obtained | |
1 Sep 2022 | Effective date of new company – Income Insurance Limited | - |
28 Dec 2022 | Liquidation of NTUC Income Insurance Co-operative Limited | |
6 Apr 2023 | Distribution-in-specie of Income Insurance Limited shares to Co-op shareholders | - |
26 May 2023 | Completion of physical share certificates deliver to Co-op shareholders |
For Policyholders
- The insurance policies issued by the co-operative, NTUC Income Insurance Co-operative Limited (Co-op) and personal data collected by the latter, had been successfully transferred to the new corporate entity, Income Insurance Limited (Income Insurance) via a ‘Scheme of Transfer’ under the Insurance Act 1966 and other agreements entered between the Co-op and Income Insurance. All existing policy coverage, benefits and terms remain unchanged.
- For existing insurance policies, there is no need for Income Insurance to issue new contracts.
- Policyholders can continue to tap on existing service branches, network of advisors, customer support and online portals to assist them on their insurance matters.
- With corporatisation, policyholders can look forward to more accessible, competitive, and comprehensive solutions, including innovations that speak to today’s digital-first customers.
- For insurance policy beneficiaries, the new corporate entity, Income Insurance Limited recognises valid nominations made in accordance with the requirements of Section 45 of the Co-operative Societies Act (CSA) and valid nominations made in accordance with requirements of Section 132 or 133 of the Insurance Act 1966, unless they have been revoked, or a new nomination has been made (under the Insurance Act 1966) prior to 1 September 2022.
- It is not necessary for life policyholders to take any action in respect of their existing nominations. All nominations which remain valid and are not revoked immediately prior to 1 September 2022 have been transferred to, recognised by and binding on Income Insurance Limited on and from 1 September 2022.
- Nevertheless, we encourage policyholders, who had made such nominations before 1 September 2009 (under the CSA) to refresh their nominations so that it is effective under the Insurance Act.
- Policyholders may wish to refresh their nomination to include any changes in their personal circumstances or beneficiaries.
- It is not necessary, as the reference to the insurance policies issued by the co-operative, NTUC Income Insurance Co-operative Limited (Co-op) is correct at the time when the will was made. All existing insurance policies had been successfully transferred from the Co-op to the new corporate entity, Income Insurance Limited as part of the corporatisation process.
- New nominations are made either pursuant to Section 49L(2) (now renumbered as Section 132) of the Insurance Act or a revocable nomination under Section 49M(2) (now renumbered as Section 133) of the Insurance Act.
For Shareholders
- Nomination of beneficiaries for Income Insurance shares is not required. Income Insurance shares shall be dealt with as part of the estate in accordance with the shareholder’s will or intestacy laws in the absence of a will.
- The share certificates will be held in custody by Income Insurance’s Share Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. (Boardroom) by default. This aims to ease the administrative burden on shareholders in relation to the physical custody of share certificates and ensures that share certificates are securely stored.
- Alternatively, shareholders have the option to make a request through Boardroom to receive and hold their physical share certificates personally.
- Shareholders have to report the loss of the physical share certificates to Income Insurance’s Share Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. (Boardroom) and file a statutory declaration and an indemnity form. Upon notification of the loss of physical share certificates, Boardroom will cancel the lost share certificates. To obtain a replacement share certificate, shareholders must pay a fee of S$2 (before GST). The replacement share certificate will be issued upon payment and is subjected to approval by Income Insurance.
- Shareholders can contact Boardroom via [email protected] or call +65 6536 5355, Monday to Friday between 8:30 a.m. to 5:30 p.m.
- Income Insurance is a public non-listed company limited by shares.
- Shares of Income Insurance are held by shareholders and can be traded by a shareholder who is a willing seller and who agrees to transfer his/her shares to a willing buyer at a price and on terms that are agreed by both parties, subject to any restrictions on such transfer that are binding on the selling shareholder (for example, if such shareholder has pledged his or her shares in favour of a third party).
- Please write in to [email protected] or call +65 6536 5355, Monday to Friday between 8:30 a.m. to 5:30 p.m.
- Income Insurance is not offering any share purchase option currently.
- A shareholder who would like to purchase more shares can approach another shareholder who is a willing seller to explore purchasing additional shares at a price and on terms that are agreed by both parties.
- Income Insurance is a public non-listed company limited by shares. Income Insurance shares are not publicly traded and in the absence of a market share price, there are several ways for shareholders to get an indicative value of their shares. They include referencing Income Insurance’s Net Asset Value or NAV per share to get an indicative value of their shares.
- For the payment of stamp duty under share transfer, the buyer should reference to Income’s company level NAV per share (including Treasury Shares). As of 31 December 2022, this figure is $29.07 (unaudited).
- This capital reduction is a one-off exercise to allay shareholders’ liquidity concerns given that share redemption is no longer an avenue for shareholders to access liquidity.
- We explored various options and decided on a capital reduction as it is the most viable option that can be implemented relatively quickly.
- Income Insurance is very strong financially and its capital adequacy ratio remains well above regulatory requirements.
- We are confident of our financial resilience and do not expect the one-off capital draw down to have any material impact on the company’s solvency position and capital adequacy level.
- The one-off capital reduction is only possible because of the company’s strong capital position.
- The company does not expect the one-off capital draw down to have any material impact on its capital adequacy or solvency position which remains well above the minimum regulatory requirements post capital reduction.
- The one-off 18-month long accounting period is due to the corporatisation exercise and serves to align the company’s financial period with the calendar year.
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