INSURANCE giant Standard Life has bolstered its management structure in preparation for a major move into emerging markets in Asia.
David Nish, the group’s chief executive, said the changes would allow the business to target “exceptional opportunities” in the region.
The group will also combine its UK and European businesses which are both facing economic challenges and increased regulation.
Nathan Parnaby, a long-term employee of Standard Life, will become chief executive of a new division, Standard Life Asia and Emerging Markets.
Parnaby was head of the firm’s European business in 2010 and was then handed additional responsibility for the Asian business.
The reorganisation marks the beginnings of a shift in Standard Life’s business model as it targets the increasing levels of personal wealth in China and India – and as markets in UK and in particular, Europe, look set to lose traction under the European sovereign crisis and increasing regulation in the form of Solvency II.
The move follows in the wake of UK rivals Aviva and Prudential which have been putting increasing focus on Asia. In March, the Pru’s Asian life insurance business became the single largest contributor to total operating profit for the first time.
Standard Life has had an office in Hong Kong since 1999, achieving 19 per cent new business growth in 2011. But in December of 2010, the insurer’s Chinese joint venture, Heng An Standard Life, hit a snag after talks to sell a stake to the Bank of China (BOC) ground to a halt. Parnaby will focus on expanding the firm’s savings and retail investment business in Hong Kong and “identify opportunities to move into new markets in the regions”, Standard Life said. He will also be responsible for “generating further value” from Heng An Standard Life, as well as its other joint ventures, HDFC Life in India.
The former Standard Life Investments (SLI) fund manager will also work with the insurer’s investment arm to identify growth opportunities for HDFC asset management.
Standard Life UK chief executive Paul Matthews will take on the role of chief executive of UK and Europe, adding responsibility for Standard’s Irish and German businesses to his current remit.
Separately, Nish’s right hand man, Sandy Begbie, has been promoted as group operations officer from his position as group operations and people director.
Nish said: “Over the past two and a half years we have made significant progress in transforming the performance of Standard Life.
“As we move forward, we must make sure that we continue to evolve and have the right organisational structures in place. The changes we’re announcing today will help us as we continue to seek to maximise the value of our international assets.
“There are exceptional opportunities in Asia and these changes ensure we’re in the best possible position to take advantage of them.
“By combining our UK and European businesses, we are even better placed to capture new growth opportunities and synergies across the business as a whole.”
