DBS Enhances Wealth Management Suite
With Bancassurance Partnership

* * *

CGNU will acquire DBS' insurance subsidiary

* * *

DBS Will Distribute CGNU's World-Class Insurance Products in Singapore

SINGAPORE, JULY 23 - DBS Group Holdings Ltd. (DBS) today announced its third significant move this year to enhance its integrated financial services suite with a bancassurance partnership with CGNU plc (CGNU), the largest insurer in the U.K. with more than 15 million customers worldwide.

Philippe Paillart, CEO of DBS said: "This partnership is an important strategic move to underscore our goal of building an integrated financial services suite, offering the broadest range of high quality wealth management and non-banking financial services products for our customers."

As part of this effort, DBS has been expanding the range and depth of its product offerings, both through developing a wider and more diverse product range and through acquisitions and strategic partnerships. For example, DBS began the year with the acquisition of Vickers Ballas, giving DBS a leading presence not only in Singapore but regionally. This acquisition was followed by the announcement in June of DBS' 50/50 joint venture with TD Waterhouse, one of the world's leading on-line and self directed brokerage companies.

DBS said that CGNU's global insurance expertise, specific bancassurance experience, comprehensive product portfolio and leading edge technology, combined with DBS' indepth knowledge and presence in Singapore creates a powerful and efficient distribution mechanism.

Paillart added: "We are very pleased to be making this announcement today with CGNU. Together we will create a powerful and effective combination, bringing together CGNU's world-class product know-how and expertise with our extensive and sophisticated distribution network."

"We know from experience that our bancassurance customers are seeking convenience, security and trust from their provider. Our new bancassurance model will focus on satisfying all three of these important customer demands," he said.

Under the agreements announced today, CGNU will purchase DBS' insurance subsidiary, The Insurance Corporation of Singapore (ICS), for S$324 million and will pay S$71 million to DBS in respect of the bancassurance partnership, with further potential amounts payable over the term of agreements if DBS meets certain performance criteria. In addition, DBS will receive a special dividend of S$51 million. In total, DBS will receive S$446 million in cash.

DBS will, in turn, enter into an exclusive arrangement to distribute CGNU life and general insurance products throughout its network in Singapore. DBS will also build a dedicated specialist sales force to sell these and related wealth management products. CGNU plans to consolidate its local insurance activities with those of ICS, as well as invest in ICS's back office processes and systems to continue recent progress in customer service and improved efficiency.

CGNU is the world's sixth-largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. CGNU has operated in the Singapore insurance market for over 120 years. ICS, which was established in 1969 and became a wholly-owned subsidiary of DBS in January 2000, offers a wide range of life, health and general insurance products to its corporate and individual customers in Singapore. ICS is one of the largest insurers in the group life market and one of the largest group accident and health insurers. ICS is also one of Singapore's leading general insurers.

Philip Twyman, Group Executive Director of CGNU, said: "This transaction will serve as our springboard into the long-term savings market of Southeast Asia. It marks our entry into this growing market in Singapore and DBS is a strong partner with an excellent distribution network. It gives us the opportunity to leverage our European bancassurance experience into new markets and to achieve consolidation benefits in our existing Singapore general insurance business."

Jackson Tai , President and Chief Operating Officer of DBS, said: "This partnership is a big win for DBS and for CGNU, as we will become the leading bancassurer in Asia. But the real winners will be our customers, who will have access to the leading bancassurance products in the world and to an integrated suite of wealth management products."

Tai added: "This is a great transaction for DBS and our shareholders from a financial point of view. We will broaden our fee income base and cross-selling potential as we sell more and better wealth management products through our sales force. And second, the gain generated from the sale of ICS will result in approximately S$140 million in new Tier I capital for us."

Keith Perkins, who will head CGNU's Bancassurance team and run ICS, said that all of CGNU's products and services would be backed by CGNU's Standard & Poor's AA financial strength rating.

"Importantly, existing ICS policyholders can be certain that their policies remain fully in force, and CGNU's focus on customer service will mean that existing policyholders' interests are well protected."