Prudential Corporation Asia to Buy Singapore’s UOB Life Assurance

Prudential Corporation Asia will acquire Singapore-based UOB Life Assurance Ltd. for S$428 million (US$307 million) after it has formed regional bancassurance alliance with the insurer's parent United Overseas Bank.

Under the agreement, UOB in Singapore together with its bank subsidiaries in Indonesia and Thailand -- UOB Buana and UOB (Thai) -- will distribute Prudential's life, accident and health insurance products through the banks' branches for 12 years, said Prudential in a statement.

UOB operates more than 400 bank branches across the three Asian markets. Prudential said the alliance helps grow the bancassurance business of both parties in the region.

Prudential said the alliance will further consolidate its leading position in Singapore, and "significantly" expand and enhance its bancassurance network in Thailand and Indonesia by extending its sales management, staff training and customers support. UOB will focus on strengthening its regional insurance distribution capability and to accelerate growth of its bancassurance business through the partnership.

Barry Stowe, chief executive of Prudential Corporation Asia, said Prudential works closely with many of the largest financial groups in Asia to develop strong distribution partnerships. It also looks forward to building a successful relationship with UOB across the region, he said in a statement.

Wee Ee Cheong, UOB's deputy chairman and chief executive officer, said that with Prudential as its bancassurance partner, the group expects to deliver greater value to customers and other stakeholders.

Prudential distributes life insurance products through its tied agency force, bank and non-bank channels in Singapore and Indonesia. It distributes products through direct and telemarketing channels in Thailand.

In Asia, Prudential Corporation Asia comprises the life insurance, asset management and consumer financial operations of its U.K.-based parent Prudential plc [85925], with businesses in 13 markets.

United Overseas Bank Ltd. is a leading bank in Asia, providing financial services through its global network of more than 500 offices in 19 countries and territories in Asia-Pacific, Western Europe and North America, including banking subsidiaries in Singapore, Malaysia, Indonesia, Thailand and China.

UOB Life Assurance, a subsidiary of UOB Group, was incorporated in Singapore in April 1990, providing life assurance products through bancassurance, independent financial advisers and direct channels.

As at September 2009, UOB Life Assurance had a paid-up capital of S$371 million and assets of over S$2 billion, said Prudential.

(By Rebecca Ng, Hong Kong news editor: [email protected])