Ending a decade-long joint
venture (JV), New York Life has sold its stake in Thai insurer Siam
Commercial New York Life (SCNYL) to its partner Siam Commercial
Bank (SCB) for THB8.4bn ($275m).
The transaction will increase
SCM’s stake in SCNYL from 47.33% to 94.66% with the balance owned
by public shareholders.
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New York Life International
chairman and CEO Dick Mucci said that, given SCB’s objective of
integrating SCNYL fully into its consumer banking platform, both
partners believe the time had come for SCB to take control of the
business. SCB has 1,019 branches, the highest number of any bank in
Thailand.
The sale of its stake in
SCNYL marks another step in New York Life’s strategy to focus on
its US home market and markets in Asia and Latin America where it
has strong market positions.
In October 2010, New York
Life agreed to sell its units in Hong Kong and Korea to
Swiss-headquartered ACE Group for $425m in cash.
In January, New York Life
announced it had entered into an agreement to sell its 50% stake in
its eight-year old JV in China, Haier Group, New York Life
(HGNYL).
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By GlobalDataThe stake will be sold, for
an undisclosed sum, to its Chinese partners, white goods
manufacturer Haier Group and Japanese insurer Meiji Yasuda
Life.
Haier Group will have a
70.76% stake in the reconstituted JV and Meiji Yasuda Life a 29.24%
stake. At the time of its sale, HGNYL ranked 21st out of 28 foreign
life insurers in China.
Following the New York Life’s
four disposals its remaining Asian interests will be a wholly-owned
unit in Taiwan and its JV in India, Max New York Life, in which it
has a 26% stake and Indian conglomerate Max India the
balance.
In Latin America, New York
Life’s wholly-owned unit, Seguros Monterrey New York Life, is
ranked as Mexico’s number one life insurer.
In Argentina, it has two JVs with UK bank HSBC – life
insurer Maxima and a pensions business.
