The Dragon Renminbi Plan is Singapore’s first single premium non-participating endowment plan, offering investors a yield of 2.85% per annum over a five year period
The Plan, underwritten by Aviva, will be available exclusively to DBS customers at all DBS Treasures Centres
Aviva and DBS Bank Ltd (“DBS”) have launched the Dragon Renminbi Plan – Singapore’s first five year Renminbi-denominated (offshore Chinese Yuan, CNH) single premium non-participating endowment plan.
The product, underwritten by Aviva, will allow investors to take advantage of opportunities on offer in the rapidly developing Chinese market. The Dragon Renminbi Plan is available to investors at all DBS Treasures Centres, with a minimum single investment of RMB250,000.
According to Mr Jeremy Soo, Managing Director and Head, Consumer Banking Group(Singapore), DBS Bank, “We’ve seen a strong demand for Renminbi products, since introducing our suite of Renminbi offerings in February this year. We’re confident the demand for Renminbi-denominated products will continue as investors seek to diversify their portfolio and capitalise on the relative strength of the Asian economy. The launch of the Dragon Renminbi Plan provides our customers with another product that leverages on the rise of Asia and China’s growth, allowing them to enjoy potential currency gains.”
The suite of Renminbi products that DBS launched earlier this year includes current and fixed-deposit accounts, currency-linked investments, as well as CNH-denominated bonds, unit trusts and structured notes. The Dragon Renminbi Plan is their first Renminbi insurance product with a five year term.
Although volatilities are expected in the short term, investors will likely see a gradual appreciation of the RMB against the USD over the next five years, making the Dragon Renminbi Plan’s five year tenure an attractive one.
Mr Simon Newman, CEO, Aviva Singapore, says that the current economic landscape has made it important for insurers to seek opportunities within the region to meet the growing financial appetite of customers.
“We felt that the time was right for us to offer a Renminbi product to our customers, backed by a rewarding yield. The Dragon Renminbi Plan is the first product of its kind and unlike anything seen in this market before. As the only Renminbi endowment product in the market right now, the plan provides investors with a mid-term financial planning solution into a currency that is expected to gradually appreciate in the next five years. Moreover, with the fixed return of 2.85%, it allows investors to gain access to China without taking on excessive market risk,” explained Mr. Newman.
“The development of such a product would of course not have been possible without the strong partnership between Aviva and DBS that has been built over a number of years,” Mr. Newman continued.
Aviva and DBS have been in a bancassurance partnership since 2001. This partnership has been a significant contributor to Aviva growing its business extensively in Singapore. The third-quarter results this year showed that Aviva’s life insurance sales grew by 65 per cent. Bancassurance sales tripled when comparing the nine months in 2011 against the same time in 2010.
 RMB is traded both onshore (in Mainland China) and offshore (primarily Hong Kong). These are traded at different rates and there are regulations that keep the currency markets apart. The differing demand and supply conditions also lead to separate market clearing exchange rates. “CNH” is used in statements and advices to denote the RMB that is available outside of Mainland China, based on offshore board rates for RMB.
- Aviva is the world’s sixth largest* insurance group, serving over 53 million customers across Europe, North America and Asia Pacific.
*Based on gross worldwide premiums at 31 December 2010
- Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of S$99.38 billion and funds under management of S$806.25 billion at 31 December 2010.
- We are the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe.
DBS - Living, Breathing Asia
DBS is a leading financial services group in Asia, with over 200 branches across 15 markets. Headquartered and listed in Singapore, DBS is a market leader in Singapore with over four million customers and also has a growing presence in the three key Asian axes of growth, namely, Greater China, Southeast Asia and South Asia. The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for three consecutive years, in 2009, 2010 and 2011.
DBS provides the full range of services in consumer, SME and corporate banking activities across Asia and the Middle East. As a bank born and bred in Asia, DBS also understands the intricacies of doing business in the region’s most dynamic markets. This market insight and regional connectivity have helped to drive the bank’s growth as it sets out to be the Asian bank of choice. The bank believes that building lasting relationships with its customers is an integral part of banking the Asian way.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 18,000 staff, representing over 30 nationalities. For more information, please visit www.dbs.com.