SCB has increased its stake in Siam Commercial New York Life (SCNYL) to 47.33% to strengthen its position as the premier universal bank and the leader in bancassurance. The move enhances the Bank’s partnership with New York Life Insurance Company, the US largest mutual life and one of the world’s leading insurance companies.
Referring to the Bank’s decision, SCB President Khunying Jada Wattanasiritham said “SCB focuses on expanding retail banking services through its extensive branch network, especially bancassurance which provides an important source of revenue for the Bank. SCB has become the dominant player in this market. The increase in stake in SCNYL reflects SCB’s commitment to becoming the premier universal bank and maintaining its dominance position by expanding the bancassurance business through its joint venture with New York Life Insurance. Customers who buy SCNYL’s life insurance products can be assured that they will be well taken care of by the Bank.”
In the agreement with New York Life Insurance, SCB has acquired 14.74 million shares of SCNYL valued at Baht 457.59 million, raising the Bank’s stake in SCNYL to 47.33% from 25.17%. In March 2005, the Bank also bought 4.24 million shares of SCNYL in a rights issue when SCNYL increased its registered capital from Baht 500 million to Baht 800 million.
Mr. Frederick Sievert, President of New York Life Insurance Company, and the newest member of the Board of Directors of SCNYL said, “This has been a period of extremely rapid growth for Siam Commercial New York Life and we believe the bank’s increased interest will further strengthen the joint venture and better position it for long-term growth in this vibrant market. SCB’s strong commitment to the joint venture is particularly encouraging for New York Life because it will allow us to provide improved life insurance products and services to SCB customers throughout Thailand.”
Mr. Donald Carden, President and CEO of Siam Commercial New York Life Insurance PCL meanwhile said, “Our strong partnership has brought an excellent success for SCNYL in the past 5 years. Our sales and market share have jumped rapidly. In 2004, SCNYL moved from the 6th to the 4th position in new business and its market share rose dramatically from 3.53% to 9.27%.”
“The synergies we have developed through our relationship with SCB will continue to strengthen the joint venture and with their support, we are determined to be one of the leading life insurance companies in the Kingdom of Thailand”, Carden added.
In 2004, SCB topped the sales of bancassurance with first year premium over Baht 4 billion, and grew more than ten times within two years. As a result, SCB’s fee income from bancassurance reached Baht 1.1 billion in 2004. In addition to SCNYL, SCB’s non-life bancassurance product providers include Samaggi Insurance and Deves Insurance. SCB Financial Group also includes subsidiaries in asset management, brokerage & investment banking business and hire purchase; all of them are the leaders in their respective industries.
About New York Life
New York Life Insurance Company, a Fortune 100 company, is the largest mutual life company in the United States and one of the largest life insurers in the world. Founded in 1845 and headquartered in New York City, New York Life offers life insurance, and through its affiliates, annuities and long-term care insurance. New York Life Investment Management LLC, a New York Life affiliate, provides institutional asset management, retirement planning and trust services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
New York Life International offers insurance products through its subsidiaries and affiliates in Argentina, China, Hong Kong, India, Mexico, the Philippines, South Korea, Taiwan, and Thailand.
For more information, please contact:
Siam Commercial Bank PCL.
Public Relations, Board Secretariat & Corporate
Communications Office
Wattanee, Duangkoew Tel; (662) 544-4501-3
Siam Commercial New York Life Insurance PCL.
Corporate Communications,
Nantawan Kijthanacharoen Tel: (662) 655-3000 Ext 3839 End.