Manulife Financial Corporation (USA) (NYSE:MFC) is banking on exceeding its expectations and maximize its reach in the Asian markets. The company has reached out to one of the promising banks in the Asian markets, Singapore-based DBS Bank Ltd.
Manulife Eyes Asian Markets
Although the market now is a small one for Manulife, however, the company is incidentally betting on bettering its investments—insurance and wealth segments, hoping that it pays off significantly in near future. An exclusive agreement has been reached between the two entities in order to sell a myriad of financial products and insurances, creating substantial customer based across China, Indonesia, Singapore and Hong Kong. The agreement has been slated to start from January 2016.
About The Deal
The deal reached is of $1.2 billion, where Manulife shall pay DBS over time. The amount shall be amortized over a period that ranges for 15 years, as per the agreement covered. The parties agreed that based on the premise and success of this partnership, further agreements may be reached in due course.
Manulife’s CEO Speaks
The CEO of Manulife Financial Corporation (USA) (NYSE:MFC), Donald Guloien mentioned on Wednesday in a media statement that this agreement shall duly accelerate the growth of Manulife across the Asian markets. This deal has been dubbed a bancassurance agreement – a commonplace model, popular in Asia and such other regions where the branches have substantial product line up that comprises critical illness and life insurance and guaranteeing income protection.
Focus On Bancassurance
The insurance markets are bettering in expanse and volumes across Asia, targeting primarily focused on the middle class. Inculcating the need for retirement savings is one of the catch areas that the company hopes to harp on, in order to reach out to customers, dubbing this as bancassurance.
Manulife Gets 6 Million DBS’ Clients
Piyush Gupta, the CEO of DBS stated that together with Manulife, the duo intends to focus on Bancassurance products and add to the overall customer propositions, adding value to investments. This deal will help Manulife get aligned to 6 million DBS consumers through branch based and alternate channels.