BANGKOK, February 17, 2011 Siam Commercial Bank Public Company Limited (“SCB”) and New York Life Insurance Company jointly announced today that they have signed a definitive agreement under which SCB will acquire all of New York Life’s and its Thai affiliate’s ownership stake in Siam Commercial New York Life Insurance Public Company Limited (“SCNYL”) for Thai Baht 8.4 billion (approximately $274 million) or about Baht 266.89 per share. The transaction is subject to customary closing conditions, including regulatory and SCB shareholder approval, and is expected to close in March, 2011. Formed by the partners in 2000, SCNYL is a joint venture among SCB, which owns 47.33%, and New York Life International, a subsidiary of New York Life that owns a 23.89% stake, and New York Life’s Thai affiliate, which owns a 23.44% interest. The remaining 5.34% of SCNYL is owned by public shareholders and, after the acquisition, SCB will own a 94.66% stake.
SCNYL, a market leader with over Baht 24 billion ($790 million) in net premium written revenue in 2010, generated impressive growth over the past 11 years and grew faster than the industry over that time period.
Khun Kannikar Chalitaporn, President of SCB, stated, “We thank New York Life for its many contributions as we worked together over the last 11 years to build a highly competitive life insurance operation in Thailand committed to serving the people of Thailand. SCB views life insurance as an important component of our long-term strategy that complements our banking franchise, and we see enormous opportunity in the Thailand life insurance sector. We plan to continue the operation’s superior growth while building on its reputation for financial strength and operational and service excellence. As always, SCB remains committed to providing exceptional service levels and enduring value to nearly 12 million customers nationwide.”
Dick Mucci, Chairman and Chief Executive Officer of New York Life International, LLC said, “Today, the joint venture operation with Siam Commercial Bank produces the majority of its sales through the bank distribution channel, and SCB is very interested in fully integrating the operation into its consumer banking platform, as it has done with all of their other bank operations. Given SCB’s strategic focus and business model, both partners believe that the time has now come for SCB to take control of the business and for New York Life to divest our stake.”
Mucci concluded, “New York Life is proud of the important role that SCNYL has played in Thailand’s economic development – by encouraging Thai consumers to save and plan for the future, through employment and capital investment, and by bringing best practices to the Thai life insurance marketplace. We wish SCB much future success with SCNYL. We now look forward to focusing our resources to maximize the value of our remaining international businesses where we will continue to invest in future growth and profitability to benefit our policyholders.”
About New York Life
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. The Company also has operations in Mexico, India and Taiwan. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
About Siam Commercial Bank
Siam Commercial Bank PCL is a leading universal bank in Thailand. It was established by Royal Charter in 1906 as the first Thai Bank and, as at December 30, 2010, had the highest market capitalization among Thai Financial Institutions (Baht 352 billion). It has the largest branch (1,019), exchange booth (113), and ATM (8,006) network in the country, attesting to its dominant position in the retail financial services marketplace. It has a diverse range of Corporate, SME, Private, and Retail customers nationwide, and has an asset size of Baht 1,477 Billion.
*New York LifeÂ Texas is the largest mutual life insurance company based on the Fortune 500, ranked within industries, Insurance: Life, Health (Mutual), Fortune magazine, May 3, 2010.
**New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.