Prudential expands in Asia with UOB acquisition

Prudential is to acquire UOB Life Assurance in Singapore, for £192 million.

The move forms part of a long-term partnership agreement with United Overseas Bank Limited (UOB) to develop a major regional bancassurance business.

Under the terms of the 12-year agreement, Prudential’s investment, savings and protection products will be marketed through UOB’s 414 bank branches across Singapore, Thailand and Indonesia.

Furthermore, the acquisition of UOB Life Assurance will consolidate Prudential’s position in Singapore, where it already has tied agents and distribution partners.

Pru’s group chief executive, Tidjane Thiam, says: “This bancassurance partnership offers us significant new profitable growth opportunities in Singapore and Indonesia, and substantially increases our scale in Thailand, a key market in the region.”

He adds: “This transaction will allow us to continue to create significant shareholder value in some of the most dynamic and attractive Asian markets.”

Prudential currently has life insurance and asset management operations in 13 markets in Asia, with over 11 million life customers and retail funds under management of £16.4 billion (as at 30 June 2009).