NTUC Income converts from co-op to corporation

The move comes amidst further increase in competition in the market.

NTUC Income has announced a proposed corporatisation exercise to convert its legal form from a co-operative (co-op) to a company that is governed by the Companies Act.

As part of the proposed corporatisation exercise, Income will transfer its existing insurance business and assets to the new company, Income Insurance Limited. The co-op will then be liquidated. The proposed corporatisation exercise is expected to be completed in the second half of 2022, subject to regulatory approvals and other customary closing conditions.

According to Income, the move was pushed by significant shifts in the market, including 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.

Competition is further increased as technology players enter the insurance space in order to answer customer’s increasing demand for more diverse and targeted products and solutions.

Income said the move to shift from co-op to a corporation will give them more operational flexibility and gain access to strategic growth options to compete on equal footing with other insurers locally and regionally.

“Since its inception, Income has consistently shown agility to adapt and stay relevant amidst evolving customer needs and market changes over the years. By embarking on the corporatisation exercise, Income is demonstrating foresight to be future-ready and sustainable in an increasingly dynamic and complex insurance landscape. More significantly, it marks our commitment to further drive long-term business and customer value in Singapore and beyond, whilst strengthening our competitive position as a leading homegrown insurer,” NTUC Income chairman, Ronald Ong, said.