UOB announced yesterday the sale of their life insurance business, UOB Life, to Prudential for S$428 million.
As part of the sales agreement, UOB will also start offering Prudential’s life, accident and health insurance products through their respective bank branches for an initial term of 12 years. This arrangement is a win-win for both parties as it allows Prudential to strengthen its market share while UOB will be able to grow its bancassurance business by leveraging more on its distribution capabilities rather than product creation.
This sale will not affect the policy terms of existing UOB Life customers. A FAQ that addresses some of the questions UOB Life policy holders might have is shown below:
Who is Prudential?
Headquartered in the UK, Prudential is a leading international financial services group with more than 160 years of history and heritage and operations spanning 13 countries in Asia. Their Singapore businesses, which include both life insurance and asset management, have provided investment, savings and protection products and solutions to Singaporean individuals and families since 1931. You can learn more about Prudential Singapore by visiting www.prudential.com.sg.
What will happen to my UOB Life policy after the sale?
There will be no change to your policy. The issuer of your policy, UOB Life, will continue to honour and service your policy before and after UOB Life is acquired by Prudential. The name of the company, UOB Life, will be changed by Prudential after completion of the sale. Prudential will inform you directly of any relevant change.
Who do I contact if I have questions about my existing UOB Life policy?
Please continue to contact UOB Life. There is no immediate change in customer support, and UOB Life will continue to service your product. Following legal completion of the transaction, Prudential will inform you directly of any relevant change.
Will the value of my UOB Life policy be affected by the sale?
The value of your UOB Life policy will be determined in accordance with the terms of your policy contract, which will be honoured by UOB Life, before and after the sale.
Which company will service my policy and life insurance needs?
You will be serviced by UOB Life. After the sale, Prudential will inform you directly if there is to be any change to this arrangement.
When will completion take place and will I be informed?
The sale is anticipated to be completed within the first half of 2010. Prudential will notify you of the completion of the sale.
Can I terminate my policy?
As the owner of the policy, you have the right to terminate your policy at any time. However, do note that any termination ofyour policy will have to be in accordance with the terms of your policy.
Should I terminate my policy?
This decision should be made in consultation with your relationship manager or financial adviser, who will consider factors like your risk profile, financial objectives, as well as your original reasons for buying the policy