The Prudential Insurance Company of America and Malaysia’s Bank Simpanan Nasional announced last week their intention to purchase 100 percent of Uni.Asia Life Assurance Berhad in a deal valued at $160 million.
PICA and BSN have submitted a request for approval of the proposed transaction to Bank Negara Malaysia, the country’s life insurance regulator. The deal is expected to close by the end of the year.
“Malaysia is a very attractive market, with long-term growth potential, low life insurance penetration and a well-developed regulatory environment,” Timothy Feige, the senior vice president and international insurance group executive for Prudential, said. “This transaction is aligned with our strategy to build upon our success in Japan, Korea and Taiwan, and expand our footprint in the growth markets of Asia through our regional office in Singapore, led by Jan van den Berg.”
PICA would, under the deal, hold 70 percent of UAL, and BSN would hold a 30 percent stake in the company. Upon completion of the deal, UAL will sign a long-term bancassurance agreement with BSN to distribute its life insurance products through BSN’s Malaysian banking network.
Additionally, UAL also has a distribution alliance for conventional life insurance products with Pos Malaysia Berhad, the country’s mail service provider.
BSN CEO Datuk Adinan Maning said the deal is “an important investment” for the bank in a market that shows strong growth potential.
“We are pleased with the opportunity to partner with a global leader in life insurance and an emerging company in Malaysia’s growing insurance industry,” Maning said. “The combination of our respective expertise has the potential to give UAL a unique advantage in the marketplace.”
Upon completion of the deal, BSN and Prudential will work with UAL to develop a sales force based on Prudential’s Life Planner model, which focuses on need-based selling and the ability to meet the insurance needs of customers in urban, semi-urban and rural areas.