DBS Group Holdings and Manulife Financial Corp. (00945.HK) have launched regional bancassurance partnership under a 15-year agreement.
Under the deal, Manulife products will be offered to DBS clients. The two firms will also team up for research and development initiatives related to technology platforms and pension products.
Manulife senior deputy chief executive and chief financial officer Stephen Roder (羅德) said in a media briefing Tuesday that he expects significant growth in sales in Singapore this year, potentially sending the group’s earnings per share next year to a higher level.
The insurance group currently derives 30 percent of its profit from Asia markets where demand for health insurance and pension products is expected to grow further due to aging populations and expanding middle class, the Hong Kong Economic Journal reported.
Manulife had earlier purchased Hong Kong mandatory provident fund business of Standard Chartered (02888.HK), a move aimed at making the firm one of the biggest players in the city.
Michael Huddart (何達德), Manulife deputy chief executive and Greater China managing director, said the group plans to leverage DBS’ enterprise client base for sale of MPF products.
DBS Bank (Hong Kong) chief executive Sebastian Paredes (龐華毅) expects revenue of the bancassurance business to double by 2018, with that from retail banking tripling and that from high-end clients surging by 80 percent.
The agreement between Manulife and DBS covers Hong Kong, Singapore, mainland China and Indonesia markets.
Pearlyn Phau (潘燕明), deputy group head of consumer banking & wealth management at DBS Bank (Hong Kong), was among the attendees at the Tuesday media briefing.
– Contact us at [email protected]