In accordance with the latest joint declaration of United Overseas Bank (UOB) and Prudential Corporation Asia (Prudential), the two premier banking institutions have forged an alliance in order to develop their bancassurance business in Asia. It has also been learnt, along with the bancassurance alliance, UOB will sell its subsidiary, UOB Life Assurance Limited (UOB Life), to Prudential for a total consideration of S$428 million.

In addition, under the bancassurance arrangement, UOB in Singapore and its bank subsidiaries in Indonesia and Thailand -- UOB Buana and UOB (Thai) -- will distribute Prudential’s life, accident and health insurance products by means of their respective bank branches for an initial term of 12 years. UOB Group operates more than 400 bank branches across the three markets.

What shall be the benefits then? Well, as far as the UOB Group is concerned, the business with Prudential will enable the Group to concentrate on strengthening its regional insurance distribution potential and also to speed up growth of its bancassurance business with a potent, proficient and credible partner. Clientele in Singapore, Indonesia and Thailand will have access to Prudential’s innovative and market-leading portfolio of insurance products.

On the other hand, with regard to Prudential, the alliance will further strengthen its foremost position in Singapore, at the same time as notably expanding and enhancing its bancassurance network in Thailand and Indonesia.

Commenting on the agreement, Mr. Barry Stowe, Chief Executive of Prudential Corporation Asia, said, “Our agreement with UOB Group demonstrates Prudential’s continued focus on growing in the Asia region and our commitment to investing in opportunities that deliver superior value for our customers, for our partners and for our shareholders. Prudential works closely with many of Asia\'s largest financial groups to create world class distribution partnerships, and we look forward to building a successful relationship with UOB across the region.”

Mr. Wee Ee Cheong, UOB Group’s Deputy Chairman and Chief Executive Officer said, “This partnership marks another step in the Group’s continued efforts in building a premier regional bank. The tie-up allows us to leverage our distribution strength and harness the manufacturing expertise of a leading life insurer, to jointly accelerate the growth of our bancassurance business regionally. We are delighted to have Prudential as our partner in this development and look forward to working together to deliver greater value to our customers and other stakeholders.”