Pan-Asian insurer FWD Group has agreed to buy Siam Commercial Bank’s (SCB) life insurance arm.
The Thailand-based bank will then enter into a distribution agreement to establish a long-term life bancassurance partnership with FWD.
SCB will receive BAHT92.7bn (£2.4bn, $3bn, €2.7bn) along with additional payments in bancassurance transactions over the course of the partnership.
Partnership
Under the 15-year arrangement, SCB will distribute FWD’s life insurance products to the bank’s customers in Thailand.
Following completion, SCB Life’s customers will not be affected by the transfer of ownership to FWD and will continue to receive protections, benefits and customer services in accordance with the terms of their policies.
All existing SCB Life policies will continue to be honoured by FWD after the deal closes.
The transaction is expected to be completed in the latter part of 2019, subject to regulatory and bank shareholder approval.
This deal comes days after FWD bought the Hong Kong life business of US-based MetLife.
Big in Thailand
Huynh Thanh Phong, chief executive of FWD Group, said: “SCB is a leading bank in Thailand, with an extensive presence and deep local experience.
“We believe there is a significant opportunity for future growth in Thailand, and we look forward to bringing greater value to our customers and shareholders.
“We are confident about our product capabilities and we are well aware of the needs and preferences of Thai banking customers.
“Through this collaboration, we will bring our combined product and digital capabilities to help customers achieve their financial goals and aspirations.”
