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Prudential Takes Over UOB's Singapore Life Arm
Prudential, the UK-based financial services firm, has
announced the acquisition of
UOB Life Assurance in Singapore as part of its newly-forged
12-year bancassurance partnership with the latter's parent,
United Overseas Bank Limited.
The UK insurer is set to pay S$428 million ($306.7 million) in
cash, subject to a post-completion adjustment to consider the
firm's net asset value upon completion, according to a
statement earlier this week.
The bancassurance deal will allow Prudential to distribute its
investment, protection insurance, and savings products through
UOB's 414 branches in Indonesia, Singapore, and Thailand.
"This bancassurance partnership offers us significant new
profitable growth opportunities in Singapore and Indonesia, and
substantially increases our scale in Thailand, a key market in
the region," said
Tidjane Thiam, the group chief executive for
Prudential.
The UK firm already has life insurance and asset management
operations in Asia, with funds under management reaching £16.4
billion ($26.3 billion) as of 30 June 2009. The partnership
will, no doubt, further expand this network and create one of
the largest asset management entities in the region.
