The segment is still doing well in Thailand but customer growth has been declining in the past three years, said SCB President Arak Sutivong.

SCB will now continue its life insurance business through a long-term partnership with FWD, said Chief Executive Officer Arthid Nanthawithaya at press conference today (July1). SCB has signed an agreement on the sale.

Following the transcation, Capital Yuan Tao expects SCB to pay a special dividend this year, between Bt16 to a maximum of 27 baht per share.

KTB Securities predicts the bank to post Bt42 billion in annual net profit after tax, representing a surge of 105 per cent.

Meanwhile, SCB has informed the Stock Exchange of Thailand this morning that it had signed a binding Share Sale Agreement with FWD – the largest life insurance transaction in Southeast Asia in terms of value.

“The process will be completed by the end of this year, including the approval of the transaction by regulators and the Bank of Thailand and other stakeholders,” Arthid stated.

Under the arrangement, SCB will distribute FWD’s life insurance products to FWD’s customers in Thailand for a period of 15 years.

SCB Life’s customers will not be affected by the transfer of ownership to FWD and will continue to receive protections, benefits and customer services in accordance with the terms of their policies, which will be upheld by FWD after the closure of the transaction, said Ronald Arculli, chairman of the board of FWD Group, at the press conference.

“The bancassurance business remains our long-term strategic priority. The establishment of this partnership with FWD will help create significant long-term value for our customers, shareholders, employees, and other key stakeholders,” Arthid said.

Currently, SCB Life has about two million policy holders, to be transferred to FWD after the transaction process.

Established in Asia in 2013, FWD is the insurance arm of Pacific Century Group. The firm entered the local market in February 2013 through the acquisition of ING.

It has 2.2 million customers in Thailand, said Huynh Thanh Phong, the company’s chief executive officer.

“Southeast Asia is the future of growth in the life insurance business. Our financial commitment of Bt92.7 billion is a symbol of our commitment in Thailand and the rest of the region,” he stated.

SCB’s share price rose to Bt145.50 at mid-day before close Bt141 per share or up Bt1.50 per share or 1.08 per cent from Friday’s close with trade value Bt6.99 billion on Monday.

This is in response to PTTEP’s repayment of similar hybrid securities on their first call date on June 19. This revision does not affect S&P’s assessment of the company’s “BBB” rating on the company’s standalone credit profile (SACP).

The ratings agency said it believes PTTEP is committed to maintaining hybrid securities as part of the company’s capital structure until the first call date in 2022.

However, PTTEP’s longer-term commitment to keeping these hybrid instruments for loss-absorption or cash conservation is uncertain, S&P said, adding that it is also considering PTTEP’s decision not to replace its hybrids repaid on June 19.

Initially S&P treated half of the $500-million hybrid securities as equity and the rest as debt. Revising the equity content to minimal will increase the calculation on PTTEP’s adjusted debt by $250 million.

PTTEP’s creditworthiness has been largely stable since the issuing of the hybrid securities in 2014, due to the company’s strong affiliation with its parent PTT Plc. PTTEP has also maintained minimal leverage through last year.

In parallel, its operating profile has weakened due to its reducing reserve life. PTTEP has also lined up two large acquisitions worth $2.7 billion to be completed by the end of this year.

PTTEP has also made a final investment decision on its 8.5 per cent-owned liquefied natural gas project in Mozambique, and the project is set to produce gas most likely by 2024.

PTTEP also won the bid for new concessions covering the Bongkot and Erawan fields in December last year and these could significantly boost its reserves over the next three to five years.

A second Nescafe Hub was opened at BTS Ekkamai in March this year, followed by one at BTS National Stadium in April and third at BTS Ari at the end of June. The remaining Nescafe Hubs will follow different formats, including choosing locations other than the BTS.

With its current expansion plans, Nescafe Hub expects to grow cup sales by over 600 per cent to reach a volume of 400,000 cups over the next year and achieving sales of Bt20 million, he said.

More than 85 per cent of Nescafe Hub customers are regulars, ordering their coffee both on the go and via delivery such as the Line Man delivery service, Seah said. Nescafe Hub uses a database for geo-targetting, sending messages about drinks and services to consumers who are within a two-kilometre radius of a Nescafe hub.

Under the agreement, commercial services will start from October 18. The supply of demineralized water is the company’s latest product, reflecting its strong determination to be a total solution provider in the utilities business, WHAUP’s chief executive officer Wisate Chungwatana said on Monday.

This is due to the continuous increase in water demand by both existing and new clients in WHA’s Industrial Estates, he said, adding that the company’s water business in Vietnam was slated to gradually commence operations in the third quarter of this year.

Earlier this year, the company signed a sales contract for clarified water with GCOxyrane Co Ltd (GCO), a manufacturer and distributor of propylene-oxide, which has a water demand of around 3.6 million cubic meters per year. It has also entered into a contract with GC Polyols Co Ltd (GCP), a manufacturer and distributor of polyetherpolyols, which has a water demand about 300,000 cubic meters per year. It is expected the two clients will start using water in their productions in December. All three new clients are located in the WHA Eastern Industrial Estate (Map Ta Phut).

The WHAUP chief executive added that for overseas investment in utilities, especially in Vietnam, the company has already been granted a license to operate utilities business in WHA Industrial Zone 1 – Nghe An. The project will be operated by subsidiary WHAUP Nghe An Joint Stock Company, which is currently under development and expected to start commercialization in Q3 this year.

In addition, the company has invested in Cua Lo Water Supply Joint Stock Company (Cua Lo), a distributor of tap water in Nghe An, which currently has a production capacity of 3,000 cubic metres per day and is expanding that capacity to 13,000 cubic metres per day. This is in accordance with company’s policy to expand overseas, especially in the CLMV (Cambodia, Laos, Myanmar, and Vietnam).

The overall outlook of the utilities business for WHAUP in 2019 is positive, with growth as planned. Apart from providing services to three new clients, the company is in talks with other new potential clients and existing clients who are in need of water.