OCBC Life Insurance Group Great Eastern Hires HSBC Greg Hingston as Group CEO Succeeding Khor Hock Seng Who is Retiring after 9 Years, Greg Hingston with HSBC for 18 Years Holding Senior Roles in HSBC Retail Banking, Wealth Management & Insurance Including as CEO of HSBC Global Insurance & Partnerships and Regional Head of Wealth & Personal Banking APAC, Prudential ex-Regional Head of Strategic Planning and M&A
30th August 2024 | Hong Kong
OCBC life insurance group Great Eastern has hired HSBC Greg Hingston as Group CEO (1/11/24) succeeding Khor Hock Seng who is retiring (31/10/24) after 9 years since joining in 2015. Greg Hingston was with HSBC for 18 years, holding senior roles in HSBC Retail Banking, Wealth Management & Insurance including as CEO of HSBC Global Insurance & Partnerships and Regional Head of Wealth & Personal Banking APAC. In 2000 to 2005, Greg Hingston was at Prudential (Hong Kong), and held senior roles including as Regional Head of Strategic Planning and M&A. Great Eastern (28/8/24): “Great Eastern Holdings Limited (“GEH” or the “Company”) today announced that Mr Greg Hingston (邢格理) will be appointed Group Chief Executive Officer (“Group CEO”) of the Great Eastern group of companies (“Great Eastern Group”) on 1 November 2024. He will succeed Mr Khor Hock Seng (许福成) who is retiring on 31 October 2024. Mr Hingston has worked in Asia for over 20 years, based in Hong Kong, and for the last 18 years with The Hongkong and Shanghai Banking Corporation (“HSBC”). During this time, Mr Hingston has held various senior executive management positions across retail banking, wealth management and life insurance, including managing Wealth and Personal Banking businesses in Hong Kong and for the Asia Pacific region. In his most recent role as Chief Executive Officer, HSBC Global Insurance and Partnerships, he was primarily responsible for setting the strategy, managing and growing the life insurance businesses of the HSBC Group. He has extensive experience in developing and transforming wealth management, life insurance and personal banking businesses, focusing in particular on Asia Pacific markets. Mr Hingston graduated with a Bachelor of Arts in Business and Marketing from London Metropolitan University and holds a Chartered Institute of Marketing Diploma from London Metropolitan University as well as a Postgraduate Diploma in Management Studies from Templeton College, Oxford University. The Nominating Committee (NC) of the Company looked at internal candidates in Great Eastern, and also commissioned an executive search firm to conduct a search within and outside Singapore to identify a suite of strong candidates. After a rigorous and extensive process, a final shortlist of internal and external candidates was considered. The NC and the Board finally selected Mr Hingston as the most suitable candidate for the Group CEO role given the Group’s strategy to grow and expand beyond its core markets of Singapore and Malaysia. Khor Hock Seng will retire on 31 October 2024, after having served as Group CEO for nine years. Mr Khor joined GEH in November 2015 and brought with him over 33 illustrious years of insurance industry experience. Under Mr Khor’s stewardship, Great Eastern Group’s total assets grew steadily from S$65.8 billion as at end-2015 to S$109.0 billion as at end-2023. Over the same period, significant growth was also experienced in Great Eastern Group’s financial performance such as gross premiums (S$8.7 billion to S$16.3 billion) and total weighted new sales (S$975 million to S$1.66 billion).” In 2024 July, Great Eastern Holdings shares was suspended on 15th July 2024 (Singapore Exchange, SGX) after crossing 90% shareholding ownership by OCBC with 93.52% shareholding. In 2024 May, Singapore 2nd largest banking group OCBC (18/7/24: $48 billion market value) announced offer to buy the remaining 11.56% shares of majority-owned life insurance group Great Eastern Holdings at $8.9 billion valuation (S$12.1 billion), with offer price of S$25.60 representing a 36.9% premium over the last traded price of S$18.7 on 9th May 2024.
“ OCBC Life Insurance Group Great Eastern Hires HSBC Greg Hingston as Group CEO Succeeding Khor Hock Seng Who is Retiring after 9 Years, Greg Hingston with HSBC for 18 Years Holding Senior Roles in HSBC Retail Banking, Wealth Management & Insurance Including as CEO of HSBC Global Insurance & Partnerships and Regional Head of Wealth & Personal Banking APAC, Prudential ex-Regional Head of Strategic Planning and M&A “
Chairman of Great Eastern Soon Tit Koon: “We wish to extend a warm welcome to Greg. The Board and I look forward to working closely with him. We are confident that with him at the helm, Great Eastern Group would be well positioned to continue strengthening its leadership position in Singapore and Malaysia, and further expand our insurance franchise in the region. His global market expertise, proven ability to lead a large multi-geography team and track record of successfully growing an insurance business through close collaboration with a banking group will be put to good use as we embark on our renewed growth strategy … … The Board has enjoyed working with Hock Seng over the past 9 years and thank him for his stellar contributions to the Great Eastern Group. He successfully navigated the Group through the Covid-19 pandemic which was one of the most challenging periods for the insurance industry. When he conveyed his intention to retire to the Board, he kindly agreed to stay on until his successor was appointed. On behalf of the Board, I wish to express our deep appreciation to Hock Seng for his strategic leadership, commitment, and contribution and wish him well in his retirement. To ensure continuity and facilitate a smooth transition, I am also pleased to inform that Hock Seng has agreed to serve as an advisor to the Board to assist in all aspects of the transition for a period of 6 months.”
Helen Wong, Director of Great Eastern and Group CEO of OCBC: “Greg’s experience in both wealth and insurance will be helpful in fostering synergy and collaboration between OCBC and Great Eastern Group under OCBC’s One Group approach. Both OCBC and Great Eastern Group are committed to serving the financial needs of customers in Singapore and the region. A lot more can be offered to our customers when we work closely together.”
Outgoing Great Eastern CEO Khor Hock Seng: “I am grateful for the wise counsel and consistent support of the Board throughout my years with the Great Eastern Group. I also extend my heartfelt appreciation to all my colleagues and financial representatives, for their support and dedication. It has been truly rewarding and fulfilling to have served as Group CEO for the past 9 years and to have grown the business of the Great Eastern Group. I am confident that the Great Eastern Group will continue to do well under Greg’s leadership, and serve the needs of our customers and other stakeholders in the best way possible.”
Incoming Great Eastern CEO Greg Hingston: “I am deeply honoured and humbled to be given this opportunity to lead the Great Eastern Group. I recognise the huge responsibility that comes with the Group CEO position of this insurance group, with its rich legacy and strong franchise in Asia. Great Eastern Group has been serving and providing insurance solutions to its 16 million customers in Singapore, Malaysia and the region, and winning their trust along the way. I look forward to joining the Great Eastern Group and leading the team into its next phase of growth and serving the needs of our valued customers in Singapore, Malaysia and elsewhere in the region.”
Great Eastern – Founded in 1908, Great Eastern is a well-established market leader and trusted brand in Singapore and Malaysia. With over S$100 billion in assets and more than 16 million policyholders, including 12.5 million from government schemes, it provides insurance solutions to customers through three successful distribution channels – a tied agency force, bancassurance, and financial advisory firm Great Eastern Financial Advisers. The Group also operates in Indonesia and Brunei. The Great Eastern Life Assurance Company Limited and Great Eastern General Insurance Limited have been assigned the financial strength and counterparty credit ratings of “AA-” by S&P Global Ratings since 2010, one of the highest among Asian life insurance companies. Great Eastern’s asset management subsidiary, Lion Global Investors Limited, is one of the leading asset management companies in Southeast Asia. Great Eastern is a subsidiary of OCBC, the longest established Singapore bank, formed in 1932. It is the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s and AA- by both Fitch and S&P. Recognised for its financial strength and stability, OCBC is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker.
Singapore Life Insurer Great Eastern Holdings Shares Suspended on 15th July 2024 after Crossing 90% Shareholding by OCBC with 93.52%, $48 Billion OCBC Had Offered to Buy Remaining Shares of Majority-Owned Life Insurance Group Great Eastern Holdings at $8.9 Billion Valuation
18th July 2024 – Singapore life insurer Great Eastern Holdings shares had been suspended on 15th July 2024 (Singapore Exchange, SGX) after crossing 90% shareholding ownership by OCBC with 93.52% shareholding. In 2024 May, Singapore 2nd largest banking group OCBC (18/7/24: $48 billion market value) announced offer to buy the remaining 11.56% shares of majority-owned life insurance group Great Eastern Holdings at $8.9 billion valuation (S$12.1 billion), with offer price of S$25.60 representing a 36.9% premium over the last traded price of S$18.7 on 9th May 2024. Currently, OCBC owns 88.44% of Greater Eastern Holdings, and plans to delist from Singapore Exchange (SGX) after successful buyout. Announcement (10/5/24): “Oversea-Chinese Banking Corporation Limited (“OCBC”) today announced a S$1.4 billion voluntary unconditional general offer (“Offer”) for the 11.56% stake in Great Eastern Holdings Limited (“Great Eastern”) that it does not currently own, a move aimed at strengthening OCBC’s business pillars of banking, wealth management and insurance, and optimising its capital to enhance shareholder returns. OCBC’s corporate strategy gained strong momentum in 2023, leveraging OCBC’s strengths to capitalise on the vast opportunities in one of the world’s fastest-growing regions. The Offer is therefore in line with OCBC’s strategy to solidify its wealth management leadership position to drive growth by capturing rising Asian wealth. The Offer price of S$25.60 represents a 36.9% premium over Great Eastern’s last traded price of S$18.70 and premiums of 38.6%, 40.0% and 42.4% over the one-month, three-month and 12-month periods up to and including the last trading date of 9 May 2024. With the Offer, OCBC intends to increase its investment in Great Eastern beyond its current stake of 88.44%, with a view to delisting the insurer from the SGX-ST … … J.P. Morgan Securities Asia Private Limited is the exclusive financial adviser to OCBC for the Offer while Allen & Gledhill LLP acts as legal adviser to OCBC.” Earlier in May 2024, OCBC completed the acquisition of Indonesia PT Bank Commonwealth with 1.2 million customers from Commonwealth Bank of Australia for $191 million.
“ Singapore Life Insurer Great Eastern Holdings Shares Suspended on 15th July 2024 after Crossing 90% Shareholding by OCBC with 93.52%, $48 Billion OCBC Had Offered to Buy Remaining Shares of Majority-Owned Life Insurance Group Great Eastern Holdings at $8.9 Billion Valuation “
Singapore $46 Billion OCBC Announced Offer to Buy Remaining 11.56% Shares of Majority-Owned Life Insurance Group Great Eastern Holdings at $8.9 Billion Valuation, Offer Price of S$25.60 Represents 36.9% Premium Over Last Traded Price of S$18.7 on 9th May 2024, OCBC Owns 88.44% of Greater Eastern Holdings & Plans to Delist from Singapore Exchange after Successful Buyout
10th May 2024- Singapore 2nd largest banking group OCBC (10/5/24: $46 billion market value) has announced offer to buy the remaining 11.56% shares of majority-owned life insurance group Great Eastern Holdings at $8.9 billion valuation (S$12.1 billion), with offer price of S$25.60 representing a 36.9% premium over the last traded price of S$18.7 on 9th May 2024. Currently, OCBC owns 88.44% of Greater Eastern Holdings, and plans to delist from Singapore Exchange (SGX) after successful buyout. Announcement (10/5/24): “Oversea-Chinese Banking Corporation Limited (“OCBC”) today announced a S$1.4 billion voluntary unconditional general offer (“Offer”) for the 11.56% stake in Great Eastern Holdings Limited (“Great Eastern”) that it does not currently own, a move aimed at strengthening OCBC’s business pillars of banking, wealth management and insurance, and optimising its capital to enhance shareholder returns. OCBC’s corporate strategy gained strong momentum in 2023, leveraging OCBC’s strengths to capitalise on the vast opportunities in one of the world’s fastest-growing regions. The Offer is therefore in line with OCBC’s strategy to solidify its wealth management leadership position to drive growth by capturing rising Asian wealth. The Offer price of S$25.60 represents a 36.9% premium over Great Eastern’s last traded price of S$18.70 and premiums of 38.6%, 40.0% and 42.4% over the one-month, three-month and 12-month periods up to and including the last trading date of 9 May 2024. With the Offer, OCBC intends to increase its investment in Great Eastern beyond its current stake of 88.44%, with a view to delisting the insurer from the SGX-ST … … J.P. Morgan Securities Asia Private Limited is the exclusive financial adviser to OCBC for the Offer while Allen & Gledhill LLP acts as legal adviser to OCBC.” Earlier in May 2024, OCBC completed the acquisition of Indonesia PT Bank Commonwealth with 1.2 million customers from Commonwealth Bank of Australia for $191 million.
OCBC Group CEO Ms Helen Wong: “The Offer is a natural progression of OCBC’s strategy. We have moved intentionally to build up a strong wealth management franchise by hiring the best people and instituting best practices and processes, and raising our investment in Great Eastern. We have been looking at opportunities to best use our capital and believe the Offer allows us to deploy our resources into a key business that is expected to be earnings accretive to OCBC. This is not the first time that we are making an offer to increase our investment in Great Eastern – first in 2004, followed by 2006. As OCBC has been the majority shareholder of Great Eastern for the past 20 years, the Group has entrenched institutional knowledge and expertise to manage the insurance business. We are confident this exercise complements our One Group, One Brand strategy. This will further accelerate our ambitious wealth management plans and build even tighter bonds and synergies across all our business pillars and key markets”.
Rationale
A) Offer is in line with OCBC’s corporate strategy and strengthens its business pillars of banking, wealth management and insurance
- First announced in 2022, OCBC’s corporate strategy is focused on four growth drivers to capture regional trade, investment and wealth flows. One of the growth drivers is to capture rising Asian wealth with its Singapore-Hong Kong-Dubai hubs and digital propositions.
- In a fast-growing region that has seen rising demand for products and solutions to enhance and preserve wealth, bringing Great Eastern even closer to OCBC reinforces its long-term vision of becoming the leading wealth management player.
- As Great Eastern has been part of OCBC’s stable of companies for decades, OCBC and Great Eastern share a strong synergistic relationship. OCBC is able to customise a full suite of investment, insurance and estate planning solutions for its customers, while Great Eastern has benefited from its access to OCBC’s extensive retail and commercial customer base.
B) Offer enhances returns and optimises capital
- The Offer is expected to be earnings accretive to OCBC. Great Eastern provides diversification to OCBC’s earnings base to deliver balanced earnings growth through economic cycles. Great Eastern has contributed an average of about S$700 million annually in net profit to OCBC over the past 10 years, which translates to an average of about 15% of OCBC’s annual net profit over this period.
- The Offer presents an opportunity for OCBC to deploy its capital to generate greater returns for its shareholders. By increasing its investment in Great Eastern, OCBC can further capture the benefits from ongoing synergies and have a greater share of Great Eastern’s value.
OCBC Completes Acquisition of Indonesia PT Bank Commonwealth with 1.2 Million Customers from Commonwealth Bank of Australia for $191 Million, OCBC Indonesia Provides Full Range of Banking Services Including Wealth Management, Private Banking, SMEs & Large Corporations
2nd May 2024 – OCBC has completed the acquisition of Indonesia PT Bank Commonwealth with 1.2 million customers from Commonwealth Bank of Australia for $191 million. OCBC Indonesia provides a full range of banking services including wealth management, private banking, and serving SMEs & large corporations. Announcement (2/5/24): OCBC’s Indonesian subsidiary, PT Bank OCBC NISP Tbk (“OCBC Indonesia”), has completed the acquisition of PT Bank Commonwealth Indonesia (“PTBC”) on 1 May 2024. OCBC Indonesia now owns 100% of PTBC’s shares, making PTBC a wholly-owned subsidiary of OCBC Indonesia. The acquisition brings more than 1.2 million PTBC customers to OCBC Indonesia. PTBC brings with it demonstrated capabilities in wealth management where it has been a pioneer, having been the first bank to obtain a licence as a Mutual Fund Sales Agent from Indonesia’s financial services authority, BAPEPAM-LK (now known as Otoritas Jasa Keuangan). PTBC will continue to operate independently until the integration process is completed. This is targeted to be in the fourth quarter of 2024. During this period, PTBC will serve its customers as usual with its banking products and services, including banking transactions at PTBC’s branches and through digital channels. OCBC Indonesia offers a full range of services to individuals across segments including Private Banking, as well as SMEs and large corporations. These customers are served through mobile and internet banking channels, as well as OCBC Indonesia’s network of around 200 branches. The bank holds one of the highest credit ratings in Indonesia, namely AAA(idn)/stable from PT Fitch Ratings Indonesia. This acquisition underscores Indonesia’s continued importance to OCBC Group. It is one of the Group’s core markets together with Singapore, Malaysia and Greater China, and presents many opportunities as ASEAN’s largest economy and the world’s fourth most populous country. China is Indonesia’s largest trading partner and Indonesia’s second largest investor. Combining PTBC’s capabilities with OCBC Indonesia’s enables OCBC Group to better capture the opportunities from the increasing ASEAN-Greater China wealth, trade and investment flows, in line with the Group’s corporate strategy. The acquisition is the latest strategic milestone for OCBC in Indonesia. It became the first Singapore bank to acquire a banking stake in Indonesia with the acquisition of a 22.5% stake in PT Bank NISP Tbk (“Bank NISP”) in 2004 – a stake that has increased over the years to the current 85%. Bank NISP was renamed to become PT Bank OCBC NISP Tbk (“Bank OCBC NISP”) in 2008. In 2023, in line with OCBC’s brand refresh, Bank OCBC NISP changed its brand name to OCBC Indonesia and adopted OCBC’s refreshed logo. Its legal name remains as PT Bank OCBC NISP Tbk.”
Helen Wong, Group CEO of OCBC: “With the acquisition process now complete, our immediate priority is to ensure the successful operational integration of PT Bank Commonwealth Indonesia into OCBC Indonesia. We are working closely with its management team and are committed to a smooth transition for the customers and employees. Customers of both banks have a lot to look forward to as we leverage our complementary strengths to expand our product and services offerings in Indonesia. This acquisition builds on our already strong presence in Indonesia. It signals our commitment to accelerating growth in the country, and to support our customers as they seek growth across multiple markets. Rising ASEAN-Greater China flows is a focal point of Asia’s growth story and a big opportunity for us. Chinese companies for instance, are looking to expand into Indonesia to tap its large young population and abundance of natural resources. Continuously strengthening our network across ASEAN and Greater China, and presence in other global financial centres, is therefore imperative to our strategy.”
OCBC to Acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 Million, Intends to Acquire Remaining 1% from Other Shareholders
17th November 2023 – OCBC has announced to acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 million, and intends to acquire the remaining 1% from other shareholders. OCBC: “PTBC focuses on retail and small and medium-sized enterprises segments, providing a range of banking and wealth management products. Based on PTBC’s unaudited financial statements as at 30 September 2023, the net asset value and net tangible asset value of PTBC was IDR4.1 trillion and IDR3.5 trillion (approximately S$356 million and S$308 million), respectively. The Proposed Acquisition is subject to amongst others, regulatory approvals from Financial Services Authority of Indonesia (Otoritas Jasa Keuangan) and the Monetary Authority of Singapore. Upon the completion of the Proposed Acquisition, PTBC will be a subsidiary of OCBC Indonesia. OCBC Indonesia has sufficient financial resources, through its own internal cash, to fund the Proposed Acquisition.” More info below:
OCBC to Acquire 99% of Indonesia PT Bank Commonwealth from Commonwealth Bank of Australia for $191 Million
16th November 2023 – Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) wishes to announce that its subsidiary, PT Bank OCBC NISP Tbk (“OCBC Indonesia”), has on 16 November 2023 entered into a Share Sale and Purchase Agreement (“SPA”) to acquire 99% of the issued ordinary shares in PT Bank Commonwealth (“PTBC”) from Commonwealth Bank of Australia. OCBC Indonesia also intends to acquire the remaining 1% of the issued ordinary shares in PTBC from the other shareholders.
PTBC focuses on retail and small and medium-sized enterprises segments, providing a range of banking and wealth management products. Based on PTBC’s unaudited financial statements as at 30 September 2023, the net asset value and net tangible asset value of PTBC was IDR4.1 trillion and IDR3.5 trillion (approximately S$356 million and S$308 million), respectively. The Proposed Acquisition is subject to amongst others, regulatory approvals from Financial Services Authority of Indonesia (Otoritas Jasa Keuangan) and the Monetary Authority of Singapore. Upon the completion of the Proposed Acquisition, PTBC will be a subsidiary of OCBC Indonesia. OCBC Indonesia has sufficient financial resources, through its own internal cash, to fund the Proposed Acquisition.
The Proposed Acquisition is not expected to have any material impact on the net tangible assets, earnings per share or capital position of OCBC Bank for the financial year ending 31 December 2023. It is envisaged that PTBC will be merged into OCBC Indonesia after the Proposed Acquisition. OCBC Indonesia will be working closely with PTBC on the migration of customers and employees to ensure a smooth transition. The Proposed Acquisition adds scale to OCBC Indonesia and deepens OCBC Bank’s presence in Indonesia. PTBC’s customer base of retail and small and medium-sized enterprise customers is complementary with OCBC Indonesia. As there is little overlap in customer relationships between OCBC Indonesia and PTBC, the Proposed Acquisition is expected to create synergies and strengthen the franchise value of OCBC Indonesia.”
None of the Directors or controlling shareholders of OCBC Bank has any interest, direct or indirect, in the Proposed Acquisition.
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