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JULY 25 - 31, 2016
ROYAL BANK OF CANADA COMPLETES SALE OF RBC GENERAL INSURANCE TO AVIVA
Toronto, Canada-based, 1.074 CAD trillion ($828.9 billion)-asset Royal Bank of Canada (RBC) has completed the sale of RBC General Insurance Company, including the insurer's home and auto insurance claims, underwriting and product development capabilities, to Toronto-based (soon to be Markham, Ontario-based) Aviva Canada Inc., a unit of London, England-based Aviva plc. The deal for the 800 million CAD (US$617.4 million) gross premium business includes a 15-year agreement whereby RBC Insurance will offer Aviva's expanded property and casualty products under the RBC brand to its customers.
RBC Insurance will continue to offer life, health, wealth, travel and reinsurance products as well as creditor and business insurance services to individuals, groups and businesses. RBC expects to record a net gain of approximately 230 million CAD (US$177.5 million) in connection with the sale of its auto and homeowners insurance business to Aviva.
FWD GROUP ENTERS VIETNAM LIFE MARKET WITH PURCHASE OF GREAT EASTERN LIFE VIETNAM 7 BANKINSURANCE AGREEMENT WITH AN BINH BANK
Hong Kong-based FWD Group, the insurance arm of Hong Kong-based Pacific Century Group, has acquired Ho Chi Minh City, Vietnam-based Great Eastern Life (Vietnam) Co. from Singapore-based The Great Eastern Assurance Company. Additionally, FWD has entered into a 15-year exclusive bankinsurance agreement with Ho Chi Minh City-based An Binh Bank to offer life insurance products through the bank's 118 offices located in 28 provinces across Vietnam.
FWD Group CEO Huynk Thanh Phong said, "The move into Vietnam is an important strategic milestone for FWD's South East Asian ambitions, as we expand our reach into underserved markets across the region to realize our vision to become a leading pan-Asian insurer."
FWD said it plans to invest in the acquired insurer's technology infrastructure, recruit a solid senior management team, retain and grow the company's employee base, and rebrand the insurer to reflect its position as a wholly-owned subsidiary of FWD Group. The insurer will remain based in Ho Chi Minh City and will retain its branch in Hanoi.
ICICI PRUDENTIAL LIFE FILES IPO PLAN
Mumbai, India-based ICICI Prudential Life Insurance Company, a joint venture company 68% owned by ICICI Bank and 26% owned by London-based Prudential plc, has filed to issue an initial public stock offering of up to 181.34 million shares, an amount equal to approximately 12.65% of the insurer's equity capital.
In the fiscal year ended March 2016, ICICI Prudential Life's retail weighted received premium (RWRP) grew 8% to 49.7 billion rupees ($742 million), up from 46 billion rupees ($686.8 million) in March 2015. The insurer dominates 11.3% of India's life insurance market and derives 60% of its business through its bankinsurance agreement with ICICI Bank and its 4,050 branches across India.
The shares to be offered will be sold from the 68% currently owned by ICICI Bank.
CONNECTICUT'S PEOPLE'S FINANCIAL TO ACQUIRE NYC-BASED GERSTEIN FISHER
Bridgeport, CT-based, $40 billion-asset People's Financial, through People's United Bank and its People's Securities unit, has agreed to acquire New York City-based Gerstein Fisher, a $3 billion-asset investment management firm.
People's Financial and People's United Bank President and CEO Jack Barnes said, "The transaction supports recent strategic investments in our fee income businesses and strengthens our New York franchise."
Gerstein Fisher Founder and Chief Investment Officer Gregg Fisher said, "We believe that our investment strategies, combined with People's United's large distribution network, will allow us to help more people invest smartly to achieve their goals than Gerstein Fisher could have on a standalone basis."
When the deal closes in the fourth quarter, pending regulatory approval, People's United's Wealth Management unit will administer approximately $20 billion in assets. Fisher will join People's United as Head of Quantitative Research and Portfolio Strategy, and People's Securities will continue to offer its wealth management services through People's Bank's network of approximately 400 retail locations in Connecticut, Massachusetts, New Hampshire, New York and Vermont.
In 2015, People's Financial produced $56.3 million in wealth management earnings, which comprised 15.0% of the company's noninterest income and 4.2% of its net operating revenue. The company ranked 49th in insurance brokerage earnings among BHCs engaged in significant banking activities, according to the Sorrento Pacific-Michael White Bank Wealth Management Report.
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