Singapore - Standard Life closes office
Source: Asia Insurance Review | Aug 2015
UK insurer and asset manager Standard Life is closing down its insurance operation in Singapore as it makes a strategic shift towards its Chinese and Indian joint ventures and its asset management business.
The closure will generate a non-operating loss of around GBP45 million (US$70 million), Standard Life said in a recent statement.
“Asia is an important part of Standard Life’s strategy with an increasing focus on building on our relationships with Chinese and Indian partners, expanding our asset management presence and growing our wholly-owned business in Hong Kong,” said Chief Operations Officer Mr Sandy Begbie.
Standard Life, which focuses on the mass affluent and High Net Worth segments, is paying off its customers in Singapore. Customers will receive the higher of the total of all contributions received by Standard Life and any bonus allocation, plus an 8% enhancement paid into the plan, or the plan value plus that 8%.
Commenting on the impact of Standard Life’s exit as a Defined Market Segment (DMS) insurer, Mr Paul Courtney, Deputy President, Life Insurance Association (LIA) Singapore said: “DMS life insurers continue to see strong business growth, focusing on meeting the needs of HNWI and mass affluent individuals. This includes providing family protection, meeting investment-oriented objectives and legacy planning solutions, amongst other offerings.”
“This is reflected in strong growth in DMS’s share of total weighted new business premiums over the years of approximately S$100 million in 2010, and now at approximately S$137 million (US$100 million) in 2014,” he said.