Singapore’s United Overseas Bank (UOB) is re-evaluating its insurance business. This includes an existing partnership with London-based insurer Prudential.
The bank wants to get more value out of insurance operations and has made the strategy decision.
Sources familiar with the development were quoted as saying that UOB has requested potential advisers to share their ideas related to its life insurance collaboration with Prudential.
On the condition of anonymity, the sources told Bloomberg that possibilities include renewing its existing bancassurance partnership with the British insurer, which commenced in 2010, or search for another partner.
Additionally, the lender is also considering alternatives for its non-life business, which is run by publicly listed United Overseas Insurance.
UOB’s consideration is at a preliminary phase and no adviser has been selected so far.
Prudential acquired UOB’s life insurance business for S$428m ($310m) in 2010. Simultaneously, the London-based insurer signed a 12-year bancassurance pact with UOB to market its life, accident and health insurance products through the bank’s offices in Singapore, Thailand and Indonesia.
Bancassurance deals in Asia have drawn a lot of attention from insurers as they seek to use the banking networks to target growing middle class in the region, Bloomberg said.
UOB is making a lot of new moves. It hopes to also launch a digital bank for digitally-savvy ASEAN consumers.