SINGAPORE - Insurer Manulife Financial Asia is paying DBS Bank US$1.2 billion in a distribution deal for its insurance products in Singapore, Hong Kong, China and Indonesia. The agreement will take effect on Jan 1, 2016.
The 15-year agreement will allow Manulife to sell life and health insurance solutions through DBS's Asian banking network of more than 200 branches and its sales force of more than 2,000, as well as via its Internet and mobile banking platforms.
As insurers try to expand quickly in Asia, banks are benefiting from selling exclusive access to their networks.
Under the agreement, Manulife will make the initial payment of US$1.2 billion to DBS, which will be amortised by both parties over 15 years. Manulife said the payment will be funded from internal sources. There will also be ongoing variable payments, which are based on the success of the partnership.