Canadian Manulife gears up with launch of new financial advisory firm
It is part of the insurer's strategy to strengthen its distribution network
Singapore
CANADIAN insurer Manulife is going on the offensive as it moves to expand its business in Singapore with the launch of a new financial advisory (FA) firm that it has a majority stake in.
Led by CEO Koh Hoe Shin, Manulife Financial Advisers had been in the works for two years and was set up with an initial capital of S$3 million.
It is part of the insurer's strategy to strengthen its distribution network, as competition in the insurance sector heats up with more entrants and as it faces headwinds.
The 250-strong firm, together with the insurer's existing FA channel, is expected to generate about 50 per cent of sales. Excluding the new firm, the FA channel contributes to about 30 per cent of business.
For now, Manulife Financial Advisers, which is one of the largest FA firms here, will be offering life and investment products from Manulife, eight from Aviva and 10 from Tokio Marine Insurance Singapore, said Mr Koh.
He added that the firm is also in partnership with Navigator Investment Services, iFast Financial and Philip Securities, and is now offering about 70 to 80 funds. The number of products to be offered is expected to expand once they clear the due diligence process.
The new FA firm is the first of its kind in Singapore to have a shareholding partnership between Manulife Singapore and three of its vice-presidents of sales - Stephen Chew, Tan Sia Keng and Tony Cheng. Manulife has a 78 per cent stake in the new firm. The remaining shares are owned by the three VPs.
Said Mark O'Dell, senior vice-president of Manulife's Asean operations: "In terms of other markets, the regulation is in different places, the structural differences and how to go about it, but we are looking at distributor-owned solutions in other markets. Malaysia is likely to be next but it will take a different form because of the regulation. So, I think this is the first and we're very interested in the success here, and I think it could be applicable in other markets."
For the longer term, the firm's plan is to grow its team of financial advisers to 1,000, said Mr Koh, adding that the shorter-term target is to double its size to 500 in one to two years' time.
Naveed Irshad, president and CEO of Manulife Singapore, said the launch of Manulife Financial Advisers marks an important move for the insurer's multi-distribution strategy.
"It clearly demonstrates our commitment to Singapore as we expand our distribution capabilities to better serve consumers here."
This comes less than two weeks after Manulife signed a S$1.6 billion bancassurance tie-up with DBS Bank, to distribute its life and health insurance products through the local lender's bank branches in Singapore, Hong Kong, China and Indonesia. The 15-year exclusive regional deal begins on Jan 1, 2016, and paves the way for Manulife to expand its currently limited market share here, as it zooms in on the lucrative savings-rich population in the region, particularly Singapore.
Clarification: This article has been updated to reflect Mark O'Dell's title as senior vice-president of Manulife's Asean operations.
