Income Insurance cancels Hive sale to Embed over CPF issues
Income Insurance has terminated the sale of its digital platform, Hive, to Embed Financial Group Holdings (EFGH) following allegations of unpaid employee CPF contributions. EFGH is currently facing legal action and government investigations regarding labor practices.
Why it matters
The collapse of this deal highlights the risks of corporate acquisitions involving startups with poor regulatory compliance and labor management issues.
Income Insurance previously said that more than 50 per cent of Hive’s existing employees would be transferred to EFGH.
Listen Summarise Income Insurance has cancelled the sale of its digital platform Hive to Embed Financial Group Holdings (EFGH) after EFGH allegedly failed to pay CPF contributions for employees. EFGH faces legal action from the CPF Board and investigations by MOM for non-payment of salaries, with mediation ongoing for six salary claims. EFGH, founded in 2024 with expansion plans in Asia and Africa, declined to comment, while NTUC supports affected workers in claiming unpaid wages. AI generated
SINGAPORE - Income Insurance has terminated the proposed sale of Hive, its digital insurance platform, to Singapore-headquartered fintech firm Embed Financial Group Holdings (EFGH).
The decision came after the fintech firm was taken to court for allegedly failing to make mandatory CPF contributions for six employees.
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