Singapore-based DBS Bank has entered into a 15-year regional distribution agreement with Manulife Financial Asia, in a bid to cover four mutually significant markets such as Singapore, Hong Kong, China and Indonesia.
As part of the deal, DBS will receive an initial payment of $1.2bn from Manulife, which will be amortized by both parties over 15 years.
The new agreement will aggregate DBS Asian banking franchise with the insurance and wealth management expertise of Manulife in the four markets.
Under the deal, Manulife will provide its life and health insurance solutions to the bank’s six million retail, wealth and SME customer base.
The products can be accessed through the bank’s network of over 200 branches and sales force of about 2,000 professionals, as well as through the internet and mobile banking platforms.
DBS, through the deal, intends to enhance its regional life insurance distribution capabilities, including its position as a leading bancassurer in Singapore.
DBS Bank CEO Piyush Gupta said: "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."
Manulife president and CEO Donald Guloien said: "DBS is a great organisation, with a great track record and a very bright future. We know DBS well, and want to be an integral part of their continued success as a leading financial services group in Asia.
"This 15-year agreement builds on our existing successful relationship with DBS. It accelerates our growth in Asia, deepens and diversifies our insurance business, and gives us access to a much wider range of customers."
Image: Head office of Manulife on Bloor Street East in Toronto. Photo: courtesy of Skeezix1000.