Manulife Financial has entered into an agreement to purchase the shares of OUB Manulife from its joint venture partner, Overseas Union Bank. Subject to regulatory approval, the S$30 million agreement increases Manulife’s ownership of its Singapore operations to 100% from 50% and the company will be renamed Manulife (Singapore) Pte Limited.

The sale and purchase of OUB Manulife will allow both joint venture partners to concentrate on developing their respective core strengths. For UOB, this is in line with the Bank’s strategy to develop its bank assurance business in Singapore and the region.

“As Singapore is a very important market with significant growth potential, Manulife Financial has been looking for opportunities to increase its investment here for a number of years,” says Vic Apps, Executive VP and general manager for Asia, Manulife Financial. “This move will enable us to develop our operations here, primarily through an expanded agency force.”

As the terms and conditions of policies will continue to be upheld, there will be no material impact on existing policies issued by OUB Manulife. “Since the start of our joint venture in 1985, Manulife Financial has actively managed the company,” says Apps.

Manulife Financial’s presence in Asia has been strengthened over the past few years through a number of expansion initiatives throughout the region including the establishment of a branch office in Guangzhou, China, that will serve to complement the existing strong business in Shanghai. It has increased ownership of operations to become 100% wholly owned in Vietnam, a rapidly growing market where in two years Manulife has 130,000 customers. And in Taiwan, where Manulife purchased the agency force of CIGNA Taiwan, it has built on its existing professional sales team.

Manulife’s sales force throughout Asia, including Japan, grew by 35% in 2001 and now numbers more than 20,000. In the past three years in Singapore, Manulife says it has experienced a 178% increase in premium income and 83 per cent growth in number of agents.

www.manulife.com