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 six 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 2,000 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 largest1 life insurer in the world, with a 118-year track record in Asia, and more than six 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 Kong2, where it established operations in 1897.
The partnership is expected to bring significant benefits to both parties:
- DBS will further strengthen its regional life insurance distribution capabilities, including its position as a leading bancassurer in Singapore, while providing its customers with a full suite of innovative and customised insurance solutions.
- Manulife will gain exclusive access to DBS customers in four highly attractive insurance markets, which remain significantly under-insured with a sizeable insurance protection gap and underfunded retirement needs.
DBS CEO 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."
Domenic Fuda, Deputy Group Head of Consumer Banking & Wealth Management at DBS, said: "We are delighted to partner with Manulife, a leading global insurer in Asia. We see many complementary opportunities to provide various leading protection and savings products to our customers, helping individuals and families achieve peace of mind when it comes to health coverage and retirement savings."
Roy Gori, President and Chief Executive Officer, 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. We are excited by the prospect of expanding our relationship."
Under the agreement, there will be an initial payment by Manulife to DBS of US$1.2 billion3, which Manulife intends to fund with internal resources. This payment will be amortised by both parties over 15 years. 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 ratio4 by 10 points on or before 1 January 2016.
A slide presentation is available at www.manulife.com/investorrelations
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| 4 Refers to The Manufacturers Life Insurance Company's Minimum Continuing Capital and Surplus Requirements ratio |
About DBS
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 250 branches across 17 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's capital position, as well as "AA-" and "Aa1" credit ratings, is among the highest inAsia-Pacific. DBS has been recognised for its leadership in the region, having been named "Asia's Best Bank" by The Banker, a member of the Financial Times group, and "Best Bank in Asia-Pacific" by Global Finance. The bank has also been named "Safest Bank in Asia" by Global Finance for six consecutive years from 2009 to 2014.
DBS provides a full range of services in consumer, SME and corporate banking activities across Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets. These market insights and regional connectivity have helped to drive the bank's growth as it sets out to be the Asian bank of choice. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 21,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com
About Manulife
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. The group operates as John Hancock in the U.S. and as Manulife in other parts of the world. They provide strong, reliable, trustworthy and forward-thinking solutions for their customers' significant financial decisions. Their international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. They also provide asset management services to institutional customers. Assets under management by Manulife and its subsidiaries were approximately C$691 billion(US$596 billion) as at December 31, 2014.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the internet at manulife.com
For details and the full press release: http://www.manulife.com/public/news/detail/0,,lang=en&artId=148289&navId=630002,00.html
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