SCB, FWD in talks for Life arm

Siam Commercial Bank (SCB) has entered into exclusive talks with Hong Kong insurer FWD Group to sell its life insurance arm, which could raise USD3 billion (THB103 billion) for Thailand’s third-biggest lender, people with direct knowledge of the matter said.

A successful deal would rank as the largest insurance M&A transaction in Southeast Asia, and the biggest in Asia since the merger of two insurance companies in India valued at USD3.2 billion in August 2016, according to Thomson Reuters data.

FWD, owned by Hong Kong tycoon Richard Li, the youngest son of Asia’s richest man, Li Ka-shing, entered into exclusive talks last month, and a decision is likely by the end of May, three people said.

If the deal were to fall through, SCB could consider new bidders for its SCB Life Assurance Plc, the people told Reuters.

Southeast Asia has emerged as a battleground for foreign insurers attracted by the region’s lower insurance penetration levels and faster growth rates for life insurance premiums than in their home markets.