(14 April 2015 – Singapore) DBS Bank Ltd has entered into a 15-year regional distribution agreement with Manulife Financial Asia Ltd to cover four mutually significant markets – Singapore, Hong Kong, China and Indonesia.
This new exclusive life bancassurance partnership will combine DBS’ superior Asian banking franchise with the insurance and wealth management expertise of Manulife, a global leader with a long-term commitment to Asia.
In the four markets, DBS’ large and growing 6 million retail, wealth and SME customer base will gain access to Manulife’s best-in-class suite of life and health insurance solutions, through the bank’s extensive network of over 200 branches and its sales force of over 2000 professionals, as well as via its internet and mobile banking platforms.
Leading to the agreement with Manulife, DBS conducted a thorough insurance partner selection process, which attracted strong interest from a number of leading regional and multinational insurers.
The process considered a number of factors, including customer focus, expertise, execution track record and potential for long term value creation.
Manulife is a leading provider of insurance and wealth management solutions. It is the sixth largest life insurer in the world, with a 118-year track record in Asia, and more than 6 million customers across 12 markets in the region.
Manulife first established a presence in Singapore in 1898 and is the leading life insurance provider of retirement and wealth solutions in Hong Kong, where it established operations in 1897.
DBS chief executive Piyush Gupta said: “Bancassurance is a key focus for DBS and an important part of our overall customer value proposition.
“Manulife’s strong customer focus and deep commitment to Asia are aligned with our own vision. We are already working with Manulife in Singapore, Hong Kong and Indonesia, and will soon be their flagship regional bancassurance partner and their largest bancassurance partner globally.
“Together, we look forward to building upon the momentum we have achieved in bancassurance.”
Roy Gori, president and chief executive, Manulife Asia, said: “The strength and vision of DBS and Manulife are highly complementary, particularly our shared focus on providing an extraordinary experience for our customers. DBS offers highly attractive distribution capabilities, an extensive customer base, and proven bancassurance capabilities.”
Under the agreement, there will be an initial payment by Manulife to DBS of US$1.2 billion (A$1.56 billion), which Manulife intends to fund with internal resources.
There will also be ongoing, variable payments, which are based on the success of the partnership, and Manulife expects the agreement to be accretive to Core EPS in 2017.
The initial payment for this regional agreement is expected to reduce Manulife’s regulatory capital ratio by 10 points on or before 1 January 2016.