By Vladimir Guevarra
LONDON--U.K. insurer Standard Life PLC (SL.LN) said Tuesday it
will open an office this month in the Southeast Asian country of
Singapore, highlighting the Edinburgh-based company's aggressive
push into Asia.
The company also plans to quadruple its sales agents in China
over the next few years, the insurer's head in Asia told Dow Jones
Newswires.
Standard Life's expansion in the region comes two weeks after
rival Aviva PLC (AV.LN) said it would exit the Sri Lankan market as
part of an effort to narrow its focus.
Recent media reports have said that Aviva is also trying to sell
its Malaysian joint venture with Malaysian bank CIMB Group Holdings
Bhd (1023.KU), and that Prudential PLC (PRU.LN), which has the
strongest presence in Asia among U.K. insurers, is among a few
insurers looking at the asset for sale.
"Singapore is a very competitive and developed market, and we
like the regulations there. It's a fantastic base to tackle
Southeast Asia. We've got a base in Hong Kong, which tackles North
Asia," said Nathan Parnaby, chief executive of Standard Life's Asia
and emerging markets division.
"The move is part of the group's strategy to accelerate its
access to the high-growth, high-value markets within Asia and
emerging markets," he said.
Mr. Parnaby's newly created division consists mainly of the
Chinese and Indian operations, which contributed 8 million pounds
($12.9 million) to the group's first-half pretax profit of GBP302
million.
Mr. Parnaby said it is possible for the company to open an
office in another market in Asia before the end of the year.
Standard Life's Singapore office will have nine people
initially, and will offer insurance and investment products for its
target wealthy customers.
In China, Mr. Parnaby said the company's joint venture with TEDA
International Holding Group, called Heng An Standard Life, is
growing fast. "Our hope is that we can increase the sales force in
China from the current 3,500 to about 14,000 over four and a half
years," he said.
Mr. Parnaby said Asia is fast becoming a more sophisticated
market, and the increasing popularity of sales of insurance
products through the Internet and mobile devices means it is
becoming easier to reach out to Asian customers.
In India, Standard Life is also looking at possibly raising its
26% stake in its Indian joint venture, should India's parliament
approve the government's plan to raise the foreign-ownership limit
to 49%.
Mr. Parnaby added that Standard Life is focused mainly on
organic growth, but is open to small acquisitions should they
become available.
Write to Vladimir Guevarra at vladimir.guevarra@dowjones.com;
Twitter: @Vlad_DowJones
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