United Overseas Bank (UOB) having sold off its non-core life assurance arm to UK's insurer, Prudential, UOB is set to yield a one-time gain of $85 million. Looking at UOB's current share price of over $19.92 and many brokerage houses targeting it to be around $23, is there really room for growth? To fork out almost $20,000 for UOB is a huge sum of money for me and so, better not.
The deal between UOB and Prudential is a sound one. Instead of succumbing to competitive pressures from larger life insurers, the group's alliance with Prudential in Asia offers new growth opportunities for its bancassurance business. UOB’s life insurance business was "sub-scale", making small losses in accounting terms, and needed to be either sold off or have more investment ploughed in to make it work. It is reported that the deal between UOB and Prudential is a 12-year one, allowing the former to distribute latter’s products in three Southeast Asian markets for initial 12 years.
Prudential having bought over UOB's life assurance unit, all existing UOB's policies will be under the custody of Prudential. As part of Monetary Authority of Singapore (MAS)'s guideline, all life insurers must have at least a minimum Capital Adequacy Ratio (CAR) of 120% to be considered "healthy". I believe this CAR will be abide even after the acquisition.
Computer, Technology, Databases, Google, Internet, Mobile, Linux, Microsoft, Open Source, Security, Social Media, Web Development, Business, Finance
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Google url shortener service, goo.gl , is now much improved with newly included features like easier copy and paste, and ability to delete e...
-
I would like to apologize that sigining of my guestbook is not possible at the moment due to an unexpected bug. There is already 74 entries ...
-
The Google Adsense made a blog post with a video to help us understand the concept behind eCPM (Effective Cost Per Thousand Impressions). ...
-
*********** Try to sleep now, close your eyes Soon the birds would stop singing Twinkling stars, are shining bright They'll be watch...
-
An efficient method to find out the total record counts of all tables in an Oracle database. select table_name, to_number(extractvalue(xm...
No comments:
Post a Comment
Do provide your constructive comment. I appreciate that.