INSURER CGU is to use Standard Chartered's muscle in Asia to help it boost sales of general insurance products in the region, writes Ian McConnell.
An agreement announced yesterday will see CGU's products sold to Standard Chartered's personal and corporate customers in Hong Kong and Singapore. They will be marketed through the bank's branch network and, it is hoped, through direct mailing and telesales.
The companies said it was anticipated the joint venture might be extended to other Asian markets in which they both operate.
CGU was formed in June by the merger of Commercial Union and Perth-based General Accident.
Bob Scott, the insurer's chief executive, said: ''This represents an excellent opportunity for us to develop our distribution capability in Asia - an important strategic market for CGU.''
In the first nine months of its current financial year, only #117m of CGU's general insurance premium income came from an albeit crisis-hit Asian market. This was less than 2% of its #6.77bn total world-wide. Hong Kong is its biggest market in the region, generating #41m of premiums during the nine months, and Singapore and Malaysia each provided about half as much. CGU is also active in Thailand.
The insurer has a similar tie-up with Abbey National in selling general insurance products in the UK, and with Credito Italiano and Banca Populare in Italy for life and pensions offerings. It also sells general insurance products through Sogassur, a joint venture with French banker Societe Generale.
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