UPDATE 1-Sumitomo Life to buy TPG's 35.5% stake in Singlife for $1.2 bln

(Updates with details and background from paragraph 2)

Dec 22 (Reuters) - Japanese insurer Sumitomo Life said on Friday it will acquire TPG Inc's 35.5% stake in Singapore Life Holdings (Singlife) for S$1.6 billion ($1.21 billion) to expand its footprint in Southeast Asia.

Sumitomo Life intends to acquire the shares from all remaining stakeholders in the Singapore insurer, effectively acquiring the entire company at a valuation of S$4.6 billion.

The deal comes months after Sumitomo bought UK-based Aviva PLC's stake in Singlife.

"Sumitomo Life, which had first invested in Singlife in 2019, sees Singapore as a key part of its Southeast Asia strategy and expects the deal to strengthen the earnings of its international business portfolio," the Singapore-based firm said in a statement.

Singlife, which serves as the exclusive insurance provider for the city-state’s Ministry of Defence, Ministry of Home Affairs, and Public Officers Group Insurance Scheme, had total assets of S$14.4 billion at the end of 2022.

Sumitomo Life last month raised its stake in Singlife to 27% from 23.2% through the purchase of S$180 million worth of new shares.

The Osaka-based firm also expressed its intention to establish a local office in Singapore April to improve its relation with Singlife and diversify its presence in the country.

"Sumitomo Life will increase earnings contribution from its overseas business which can strengthen its business sustainability," it said in a statement.

Texas-based TPG is an alternative asset management giant with around $212 billion in assets under management, according to data from its website.

($1 = 1.3261 Singapore dollars) (Reporting by Rishav Chatterjee in Bengaluru; Editing by Dhanya Ann Thoppil)