Manulife pays $1.2b for DBS tie-up

The Canadian insurer fended off stiff competition for the bancassurance partnership from AIA, Prudential and the incumbent Aviva which called the price tag economically unviable.

Canadian insurer Manulife will pay DBS an initial $1.2 billion for the right to sell its insurance and wealth management products to the Singapore bank's increasingly affluent six million clients across Asia for 15 years.

The deal takes effect January 1, 2016 and covers four markets Singapore, Hong Kong, Indonesia and China, the financial institutions said in a joint statement on Monday.

The sale is likely to be the last major pan-regional deal of its kind, known in the industry as a bancassurance distribution tie-up, as other big players have already found partners. Citigroup inked a deal with Hong Kong-headquartered AIA in 2013, Standard...

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