The Siam Commercial Bank Public Company Limited (“SCB”) and FWD Group (“FWD”) today announced the completion of FWD’s acquisition of SCB Life Assurance Public Company Limited (“SCB Life”) from SCB. Concurrently, SCB and FWD will also commence their 15-year bancassurance partnership in Thailand. This is the largest ever life insurance transaction in Southeast Asia.
SCB has received a total consideration in connection with the Shares Sales of THB 92.7 billion and will receive payments common in bancassurance transactions over the course of the bancassurance partnership. FWD plans to rename and rebrand SCB Life, subject to regulatory approval.
SCB Life customers will not be affected by the transfer of ownership to FWD and will continue to receive protection, benefits and customer services in accordance with the terms of their policies. All existing SCB Life policies will continue to be honoured by FWD.
Mr Arthid Nanthawithaya, SCB Chief Executive Officer and Chairman of the Executive Committee, said, “We are very excited to announce the closing of this landmark transaction and the commencement of our long-term life bancassurance partnership with FWD. With our shared ambition and commitment, we have full confidence that the partnership will deliver the best value for our customers, shareholders, employees, and other key stakeholders.” Mr Arthid added, “We both aim to bring market-leading products and enhanced digital experiences to our customers and combine the strengths of SCB and FWD to take our bancassurance business to the next level.”
Mr Huynh Thanh Phong, FWD Group Chief Executive Officer, said, “The completion of this transaction is the climax of months of hard work and dedication and I’m thrilled that we can finally begin this new exciting chapter of our journey in Thailand.” Phong added, “I’d like to personally welcome all the staff, agents and customers of SCB Life to FWD and look forward to working together with SCB to grow our business, bring fresh and positive experiences to our customers and ultimately change the way people feel about insurance.”
Under the distribution arrangement with SCB, the bank will distribute FWD’s life insurance products to its customers in Thailand, leveraging its distribution channels for a period of 15 years. This partnership combines SCB’s large customer base and best-in-class distribution network with FWD’s innovative product propositions and strong digital capabilities to offer customers superior life insurance products and enhanced digital experiences.