Siam Commercial Bank Public Company Limited (SCB) has announced that the shares sale of SCB Life Assurance Public Company Limited and the entry into a long-term distribution agreement to form a bancassurance partnership with FWD Group Financial Services Pte. Ltd. had been completed on September 26, 2019.
Under the shares sale, SCB had received a total consideration of 92.7 billion baht which will lead to a post-tax capital gain of approximately 11 billion baht. The resulting net profit from this capital gain in SCB’s third quarter financial statements is subject to further considerations and various factors relating to its business.
According to SCB’s accounting policies, 17.7 billion baht will be recognized as income over 15 years. SCB will also receive payments common in bancassurance transactions over the course of the long-term distribution agreement. This transaction is the largest ever life insurance transaction in Southeast Asia.