DBS, Manulife tie-up takes aim at Asia’s growing insurance market
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in," Mr Richard Vargo, regional head of bancassurance at DBS Bank says.
By Tang See Kit, Channel NewsAsia
Posted 05 Jan 2016 14:44
SINGAPORE: The official launch of a 15-year regional distribution deal between Singapore’s DBS Bank and Canadian insurer Manulife Financial Asia on Tuesday (Jan 5) marks the latest move by companies aiming to gain access into one of the world’s fastest-growing life-insurance markets.
Mr Richard Vargo, regional head of bancassurance at DBS Bank, said at the press conference on Tuesday: “The middle class in this part of the world will expand by more than three times to 1.8 billion by 2020.”
Despite this explosive growth, Asia remains largely under-insured, Mr Vargo added.
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in,” he said.
Manulife's chief financial officer Steve Roder agreed, noting that "Asia is fundamentally important" to the Canadian life insurer.
"The deal is expected to add materially to insurance sales in Asia from the first year and improve the bank's insurance position especially in Singapore," said Mr Roder, adding that the agreement could catapult Singapore into Manulife's third leading market in Asia, behind Hong Kong and Japan.
Manulife also expects the partnership to help boost core earnings per share in 2017.
The access to DBS' large and growing retail, wealth and small and medium enterprise (SME) customer base of six million will help Manulife to "deepen and diversify its distribution, while increasing scale and capabilities", added Mr Roder.
S$100M PLUNGE INTO DIGITAL TECH
Both companies also announced plans to make "mutual long-term commitments and investments", such as co-funding up to S$100 million over the next 15 years into digital technology and innovation enhancements plans.
Manulife noted the emphasis on digital enhancements is in line with the changes of how consumers now access banking services. Mobile banking platforms, for instance, are particularly popular in China.
"We want to take bank insurance to the next level in Asia and be the most advanced bank insurance platform in the region," Mr Roder said.
DBS Group Head of Consumer Banking and Wealth Management Tan Su Shan agreed, noting that there is also a shift from Internet to mobile among consumers in Singapore and that it is "imperative to ensure that the digital journey is seamless".
According to a joint filing to the Singapore Exchange in April 2015, Manulife will pay DBS an initial payment of US$1.2 billion, as well as additional variable payments based on the success of the bancassurance partnership. The bancassurance model refers to insurance products distributed through a bank's branch network rather than through individual insurance agents.
Manulife is taking over UK insurer Aviva, which was the primary distributor of insurance products via DBS' Asian branch network since 2001.
Global insurers keen to tap into one of the world's fastest-growing life insurance markets have been courting Asian lenders over the years, offering attractive prices for multi-year exclusive access to the banks' branch networks across the region.
Prudential last year renewed a 15-year distribution agreement with Standard Chartered. This came on the back of AIA Group inking a 15-year exclusive deal with Citibank to distribute its insurance products via the lender's Asia-Pacific retail branch network in 2013.
The billion-dollar tie-up between DBS and Manulife is reportedly the last major agreement of its kind until HSBC considers a new deal in 2022, according to Reuters.
- CNA/av
- wong chee tat :)
Showing posts with label Manulife. Show all posts
Showing posts with label Manulife. Show all posts
Tuesday, January 5, 2016
Friday, November 23, 2012
Newly-launched Clifford Capital says it has "decent pipeline" of projects
Newly-launched Clifford Capital says it has "decent pipeline" of projects
By Linette Lim | Posted: 22 November 2012 2350 hrs
SINGAPORE: Specialist finance firm Clifford Capital launches its operations Thursday on a firm footing.
The company, backed by a consortium of shareholders that includes Temasek Holdings, DBS Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Manulife through its unit, John Hancock Life Insurance Company and Prudential Assurance Company Singapore, said it already has a "decent pipeline" of transactions which are spread across broad geographic regions.
The firm, which provides financing to Singapore corporates in bidding for large, long-tenor projects overseas, expects to operate at a steady state within the next two to three years.
Tharman Shanmugaratnam, Singapore Deputy Prime Minister and Finance Minister, Chairman at Monetary Authority of Singapore said: "We are well placed -- the community here, of financial institutions, multilateral development institutions, government working together with Clifford Capital and professional specialists -- we are well placed as a community in Singapore to help to catalyse the development of infrastructural finance in Asia and beyond."
The company aims to have 80 percent of its portfolio comprising projects that involves Singapore-based firms.
These refer to companies listed or incorporated in Singapore with a material presence in the city state.
In turn, the Singapore government will back debt instruments issued by Clifford Capital with a guarantee.
Clive Kerner, CEO of Clifford Capital said: "The debt is guaranteed by the government of Singapore, which is in turn, triple A.
"If you compare that situation with many of the banks in the world at the moment, I'm not sure there are any banks that actually have triple A credit rating, so what that will do is give us a very low cost of funding and we think we'll be able to pass that benefit on to our clients in the form of attractive financing solutions."
Over the next decade, the Asian Development Bank estimates that there will be about US$8.3 trillion worth of infrastructure investment in Asia.
But at the same time, the cost of funding these investments is up.
Ray Ferguson, CEO of Standard Chartered Bank Singapore said: "The rules around Basel III and banks make long term financing harder for banks to provide, particularly financing beyond the sort of five-year level, because it's very difficult for us to get matching deposits.
"So Clifford can come in take the longer term tranches of some of those deals."
For a start, Clifford Capital will focus on financing the infrastructure and offshore and marine sectors with an average deal size of US$50 to US$100 million.
These are the sectors which Singapore firms have the competitive advantage.
- CNA/lp
- wong chee tat :)
By Linette Lim | Posted: 22 November 2012 2350 hrs
SINGAPORE: Specialist finance firm Clifford Capital launches its operations Thursday on a firm footing.
The company, backed by a consortium of shareholders that includes Temasek Holdings, DBS Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Manulife through its unit, John Hancock Life Insurance Company and Prudential Assurance Company Singapore, said it already has a "decent pipeline" of transactions which are spread across broad geographic regions.
The firm, which provides financing to Singapore corporates in bidding for large, long-tenor projects overseas, expects to operate at a steady state within the next two to three years.
Tharman Shanmugaratnam, Singapore Deputy Prime Minister and Finance Minister, Chairman at Monetary Authority of Singapore said: "We are well placed -- the community here, of financial institutions, multilateral development institutions, government working together with Clifford Capital and professional specialists -- we are well placed as a community in Singapore to help to catalyse the development of infrastructural finance in Asia and beyond."
The company aims to have 80 percent of its portfolio comprising projects that involves Singapore-based firms.
These refer to companies listed or incorporated in Singapore with a material presence in the city state.
In turn, the Singapore government will back debt instruments issued by Clifford Capital with a guarantee.
Clive Kerner, CEO of Clifford Capital said: "The debt is guaranteed by the government of Singapore, which is in turn, triple A.
"If you compare that situation with many of the banks in the world at the moment, I'm not sure there are any banks that actually have triple A credit rating, so what that will do is give us a very low cost of funding and we think we'll be able to pass that benefit on to our clients in the form of attractive financing solutions."
Over the next decade, the Asian Development Bank estimates that there will be about US$8.3 trillion worth of infrastructure investment in Asia.
But at the same time, the cost of funding these investments is up.
Ray Ferguson, CEO of Standard Chartered Bank Singapore said: "The rules around Basel III and banks make long term financing harder for banks to provide, particularly financing beyond the sort of five-year level, because it's very difficult for us to get matching deposits.
"So Clifford can come in take the longer term tranches of some of those deals."
For a start, Clifford Capital will focus on financing the infrastructure and offshore and marine sectors with an average deal size of US$50 to US$100 million.
These are the sectors which Singapore firms have the competitive advantage.
- CNA/lp
- wong chee tat :)
Monday, June 6, 2011
Manulife Singapore to double headcount by 2014
Manulife Singapore to double headcount by 2014
By Linette Lim | Posted: 02 June 2011 2042 hrs
SINGAPORE: Insurer Manulife Singapore plans to double the headcount of its agents and financial advisers by 2014. The Canadian-based insurer said it is investing S$11 million over the next six years in Singapore. This is in line with its expansion plans in Asia.
Manulife Singapore posted an 8 per cent growth in total weighted premium for the first quarter ended March 31. This refers to total sales of new regular and single premium insurance policies.
Regular premium products require periodic premium payments, while single premium products require only a lump sum payment from the policyholder.
Total weighted premium sales for the quarter was S$20 million. Its sales were boosted by single premium investments and high-net-worth plans.
Last week, it moved into a new financial advice and customer service centre. The 29,000 square feet centre is located in Tampines.
Annette King, President and CEO of Manulife Singapore, said: "We have opened a new office in Tampines, and we will also be opening a new office in Bras Brasah later in the year. We have about 900 agents already, we're planning to double that number."
-CNA/ac
- wong chee tat :)
By Linette Lim | Posted: 02 June 2011 2042 hrs
SINGAPORE: Insurer Manulife Singapore plans to double the headcount of its agents and financial advisers by 2014. The Canadian-based insurer said it is investing S$11 million over the next six years in Singapore. This is in line with its expansion plans in Asia.
Manulife Singapore posted an 8 per cent growth in total weighted premium for the first quarter ended March 31. This refers to total sales of new regular and single premium insurance policies.
Regular premium products require periodic premium payments, while single premium products require only a lump sum payment from the policyholder.
Total weighted premium sales for the quarter was S$20 million. Its sales were boosted by single premium investments and high-net-worth plans.
Last week, it moved into a new financial advice and customer service centre. The 29,000 square feet centre is located in Tampines.
Annette King, President and CEO of Manulife Singapore, said: "We have opened a new office in Tampines, and we will also be opening a new office in Bras Brasah later in the year. We have about 900 agents already, we're planning to double that number."
-CNA/ac
- wong chee tat :)
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