Temasek, Warburg Pincus-backed insurance group SRG embarks on aggressive regional expansion plan

SINGAPORE - The speciality insurance group that counts Singapore’s investment company Temasek and global private equity firm Warburg Pincus as majority shareholders has set its sights on an aggressive plan to expand its footprint in the region.

Specialist Risk Group, or SRG, which has British and Irish heritage, is now looking to add operations in regional markets such as Malaysia, the Philippines and Indonesia, said its Asia-Pacific chief executive Collin Yap.

This comes as the group launched its operations in Singapore, which is its Asia-Pacific headquarters, following the October 2024 acquisition of Singapore-based retail insurance broker HL Suntek Insurance Brokers from Hong Leong Holdings.

Mr Yap, 54, said the group is looking to grow its regional business in excess of 10 per cent year on year.

The firm, now fully licensed, is offering financial risk coverage such as professional indemnity insurance for various professions like doctors, lawyers and accountants, marine hull insurance, warrant and indemnity coverage in mergers and acquisitions, as well as political risk coverage.

But first, it is looking at cross-selling and upselling to existing clients.

For instance, HL Suntek, whose strength is in construction risks, may have clients who needed trade credit insurance but never got it.

The combined expertise has paved the way for the group to fill what Mr Yap calls a “white space”, and offer other areas of coverage to clients.

“So we complement the companies and the businesses we acquire in the white space to upsell and cross-sell, apart from going after new business in the marketplace,” said the CEO, who was appointed in October 2024.

A similar approach will be taken in Malaysia, where SRG is in the midst of an acquisition.

In other markets such as the Philippines, SRG’s operations will begin from scratch, so the business will zoom in on specific risks.

For companies like Temasek that have global assets and operations, SRG can work out regional or global insurance programmes.

When asked about competition, Mr Yap noted that it has four or five competitors in the speciality space, but their speciality portfolio sits within a much larger organisation, so the focus may be diluted.

He added that while there is competition, it will not be at the levels “you would see in the property casualty space, where almost everyone is in that”.

Mr Yap noted that the Singapore Government recently announced huge investments in the construction sector, and this will likely increase the need for speciality insurance.

So far, the group has more than 900 employees globally.

Of this, over 40 are based in Singapore, and Mr Yap said there are plans to hire more, including specialist leaders in financial lines and marine.

He added that the new Singapore office can accommodate up to 90 employees.

In May 2024, SRG announced it was to be acquired by Temasek and Warburg Pincus.

The deal, where the two investors hold a 60 per cent stake in the group, was completed in September.

German’s largest broker Ecclesia holds a 20 per cent stake and the remaining 20 per cent is held by the group’s senior executives.”

The investment could pave the way for Temasek to develop SRG into its captive insurance broker, which would then bring strategic savings for its insurance programmes regionally and globally.

Mr Fu Wimala, CEO of insurance broker Anika, said: “Think of the immense value this brings to Singtel, CapitaLand, Singapore Airlines, SP Group, SMRT and PSA.”

While some may frown upon more competition, he said SRG’s addition could grow critical technical and operational competency in the dwindling local talent pool operating the Singapore general insurance market.

“The entire industry will benefit by moving away from slash-and-burn pricing if clients perceive experienced agents and brokers can convincingly commandeer technical ability as well as operational excellence,” added Mr Wimala.

Correction note: In an earlier version of the story, we said that Temasek and Warburg Pincus hold a combined 80 per cent stake in SRG. The firm has since clarified that it is a 60 per cent stake.