Prudential, the UK-based financial services firm, has announced the acquisition of UOB Life Assurance in Singapore as part of its newly-forged 12-year bancassurance partnership with the latter's parent, United Overseas Bank Limited.

 

The UK insurer is set to pay S$428 million ($306.7 million) in cash, subject to a post-completion adjustment to consider the firm's net asset value upon completion, according to a statement earlier this week. 

 

The bancassurance deal will allow Prudential to distribute its investment, protection insurance, and savings products through UOB's 414 branches in Indonesia, Singapore, and Thailand. 

 

"This bancassurance partnership offers us significant new profitable growth opportunities in Singapore and Indonesia, and substantially increases our scale in Thailand, a key market in the region," said Tidjane Thiam, the group chief executive for Prudential. 

 

The UK firm already has life insurance and asset management operations in Asia, with funds under management reaching £16.4 billion ($26.3 billion) as of 30 June 2009. The partnership will, no doubt, further expand this network and create one of the largest asset management entities in the region.