SINGAPORE – Income Insurance will sell its digital insurance platform, Hive, to Singapore-headquartered digital financial infrastructure group Embed Financial Group Holdings (EFGH) for an undisclosed sum, the insurer said on June 18.
The offer from EFGH was assessed across strategic fit, ease of integrating the two businesses and value considerations.
Post transaction, EFGH will own 100 per cent of Hive, while Income Insurance will remain a customer of the platform.
Of Hive’s 42 existing employees, 27 will be transferred to EFGH, while the rest will be redeployed within Income.
Developed by Income over the past five years, Hive is a technology platform that helps insurers create, distribute and manage insurance products.
It enables insurers and business partners to launch new insurance offerings more quickly, including flexible products that can be purchased on a subscription, pay-per-use or bite-size basis, for example.
The platform has been used in partnerships with insurers and other digital service providers across Singapore and the region, helping to make insurance more accessible and address gaps in coverage.
Andrew Yeo, chief executive of Income Insurance, said in the insurer’s June 18 statement that Income has built Hive into a strong and scaleable digital platform that provides value to users across South-east Asia.
“The time is right for Hive’s next phase of growth,” said Yeo, adding that the digital platform’s future would be better supported by a global player with the means to accelerate and scale its business further.
Dennis Ng, EFGH’s executive chairman, said bringing Hive into EFGH’s infrastructure will allow the group to extend its offerings to existing markets and partnerships – from public transport in Singapore to cross-border financial services across Asia and Africa.
EFGH works with governments and financial institutions to provide financial services such as insurance and payments through their existing apps and platforms. In Singapore, for example, it has partnered with SimplyGo to explore offering micro-insurance products through the public transport app.
For Hive, the deal will give it access to a wider international network, helping it expand beyond South-east Asia and reach more customers globally.
The transaction also comes after EFGH agreed to merge with a US-listed special purpose acquisition company in a deal valuing EFGH at about US$425 million (S$547 million) and paving the way for a proposed listing on the New York Stock Exchange.
