NTUC Income CEO Andrew Yeo and chairman Ronald Ong.

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.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Insurance industry’s profit for 2021 reached $14.78b
The company said it cannot pay all the claims for all of its COVID-19 policies.
Generali is investing around $190.47m in two joint ventures.
This is exclusively offered for the first year’s policyholders.
The tool measures a customers financial health whilst offering solutions.
One of its aims is to research insurance products for autonomous driving.
The insurance firm is set to release a mind health index tailored by country. 
The grant will be used to improve a digital assistance platform.
Life segment to revive in 2022, driven by increased awareness.
Motor insurance premium decline triggered this shift.
The regulator said it plans to implement this in mid-February.
He was recently the previous underwriting chief of Echo Re.
The insurer proved stable with core operating profits at ¥690b.
This is part of the firm's commitment to develop in-house talents.
Insurers sold 42,376 policies from 1 January up to 17 January.