Aviva's Bancassurance Agreement With DBS Bank To Conclude At End Of 2015

(RTTNews) - Aviva plc (AV.L, AV) said that its bancassurance agreement with DBS Bank Ltd will conclude at the end of 2015.

Upon the conclusion of the DBS agreement, Aviva will retain the existing book of business, associated profits, and customer rights and relationships which were purchased in the original transaction with DBS in 2001.

In the 12 months ending 31 December 2014, products sold through DBS represented about 20% of Aviva Singapore's value of new business or 'VNB'. The conclusion of the agreement is not material at group level representing less than 3% of Aviva's total VNB in 2014.

The anticipated acquisition of Friends Life Group adds Friends Provident International to Aviva's Asian portfolio of companies, expanding its capabilities in the affluent and wealth management segments in Singapore, Hong Kong and Dubai.

Earlier today, Asian financial services group DBS Bank Ltd. and Manulife Financial Asia Limited (MFC.TO, MFC) said they signed a 15-year regional distribution agreement for Singapore, Hong Kong, China and Indonesia. The exclusive life bancassurance partnership for the four mutually significant markets will be effective from January 1, 2016. As part of the agreement, Manulife will pay to DBS of $1.2 billion. The partnership will combine DBS' Asian banking franchise with the insurance and wealth management expertise of Manulife.