DC Advisory (DC) exclusively advised Prudential Financial Inc. (Prudential) on the acquisition of 100% of Uni.Asia Life Assurance Berhad (UAL), through a newly formed joint venture with BSN, with Prudential holding 70% and BSN holding the remaining 30%. The transaction was valued at MYR 518 Mn.
The transaction would allow Prudential to build upon its success in Japan, Korea, and Taiwan, and expand its footprint in the growth markets of Asia.
Prudential formed a joint venture with Bank Simpanan Nasional (BSN), a local Malaysian bank, to complete this acquisition as there is a foreign ownership limit of 70% for life insurance companies in Malaysia.
UAL is a mid-sized life insurer in Malaysia with a stable and scalable platform, as well as branches in major towns across the country. It primarily distributes its products through agencies serving affluent and emerging affluent individuals and families, as well as through bancassurance and ‘posassurance’ serving the mass market.
As part of the overall transaction, UAL also signed a strategic, long-term bancassurance agreement with BSN to distribute its conventional life insurance products through BSN’s banking network in Malaysia. BSN is one of Malaysia’s largest banks with 397 branches and 8.2 Mn customers.
UAL also has a strategic distribution alliance for conventional life insurance products with Pos Malaysia Berhad (Pos Malaysia).