Standard Life is closing down its business in Singapore as the British insurer and asset manager intends to focus on its ventures in China and India, as well as on its asset management business, it said in a statement.
Despite the closure, the firm said Asia will stay as one of its key markets.
“Asia is an important part of Standard Life’s strategy with an increasing focus on building on our relationships with Chinese and Indian partners, expanding our asset management presence and growing our wholly-owned business in Hong Kong,” said chief operations officer Sandy Begbie.
Standard Life, which recently announced a change in its CEO, said the closure will entail a 45 million pounds ($70.6 million) non-operating loss covering impairment of intangibles, including deferred acquisition costs, as well as other costs of closure.
When asked why the firm is closing its Singapore business, a Hong Kong-based spokesperson told NexChange in an email:
“Standard Life’s strategy in Asia continues to evolve with an increasing focus on our relationships with Chinese and Indian partners, expanding our asset management presence and growing our wholly-owned business in Hong Kong. We no longer feel that we can deliver sustainable value for our customers and shareholders through our insurance business in Singapore.”
Chief executive David Nish is stepping down on August 5 and will be replaced by Keith Skeoch, the firm announced on June 19.
Standard Life said it will be contacting all customers in Singapore with an in-force plan to offer them a closure value. The closure value will be the higher of:
- The total of all contributions received by Standard Life and any bonus allocation, plus an 8% enhancement paid into the plan or,
- The plan value, plus an 8% enhancement paid into the plan.
The planned closure of its Singapore unit is subject to regulatory approvals.
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