The UAE is central to our strategy for the region

Friends Provident International (FPI) is one of the UK's leading financial services companies, with $202 billion (Dh1.5trn) of funds under management. The company brings 175 years of experience in protection, savings and group pensions to the region.

The Dubai office, which Matt Waterfield heads, has a team of permanent sales and administration staff to provide service and support to independent financial advisors when they need it.
FPI has assurance agreements with the National Bank of Abu Dhabi and Riyad Bank in Saudi Arabia.

"At the forefront of our business strategy is the expansion of our international operations," says Waterfield. "The UAE is central to our strategy for the Middle East. Establishing offices within the central business district of Dubai is evidence of Friends Provident's commitment to the region.

"We now have a robust platform from which to deliver new products and services which will add value to distributors and customers alike, value to the local market, broaden activities within the region, and provide increasing support to intermediaries and distributors," he said. Excerpts from an interview:

When you say "add value", what does this mean for the customer, for the distributor?

Our business is very people oriented and we add value by having on the ground expertise that can help increase our focus on customer services. What that means is we're constantly looking at ways in which to work with our distributors on products and services that offer greater flexibility and value to the end consumer.

Having that local presence also makes FPI visible and accountable. That gives our customers peace of mind that we are here and able to respond immediately.

Finally, gaining a UAE insurance license from the Ministry of Economy adds to our customers' peace of mind. Knowing that FPI is a legally established financial institution adds tremendous value to our offering.

Why did FPI choose the UAE to set up regional operations?

The Middle East is an exciting region and, along with Asia, is one of the fastest growing markets in the world today. The UAE is one of the largest insurance markets in the Middle East, reflecting the economic growth of the country as well as the boom in population and infrastructure. The UAE is fast becoming a major finance hub and institutions such as the DIFC are helping the market to keep up with mature markets in the rest of the world.

In addition, Friends does most of its business through third parties, such as insurance brokers, and the UAE offers the highest density of distributors within the region for us to work with, which is of course a major plus.

Which GCC markets look promising and why?

As well as the UAE, we also work closely with our banking partner in Saudi Arabia, Riyad Bank. We are honoured to have partnered with one of the largest and most respected banks within the Middle East and are committed to developing the life insurance business within the Kingdom. Saudi Arabia is a very exciting market to be in at the moment, and represents perhaps one of the most significant growth opportunities for the insurance business.

We are looking at establishing operations within other jurisdictions that offer robust and regulated environments for FPI and our distributors. We are currently talking to a number of regulators within the region about establishing local operations and hope to have more information on this in the near future.

What kind of products and services is FPI concentrating on for this region?

Friends is a global life insurance, savings and investment provider. We offer solutions for clients wishing to save on a regular basis to create wealth. We work with over 200 fund managers to offer access to world markets and specialise in offering life insurance to help clients protect their wealth for their families in the event of their death or disability. As the UK's leading company pension provider, we are looking to introduce our employee benefit experience to the region in the form of group savings plans which will allow employers to create a pension scheme for their employees to reward service. We also provide total and permanent disability cover on mortgages; Shariah and GCC equity funds; savings plans available in AED, USD, EUR, GBP and Hong Kong dollars; and local underwriting. Friends also has a strong pedigree in developing e-solutions specifically for our Middle East distributors and clients, and 80 per cent of the group's life insurance business is done online.

Wealth management seems to be a buzz in the region. What do you offer in this segment? Do you assist in the formation of family trusts and foundations?

We work closely with a number of private banks and family offices within the region to offer bespoke insurance solutions for high net worth clients who may have assets in various jurisdictions, and therefore have multi jurisdictional tax and estate issues. FPI's head of wealth management is based in Dubai to assist local partners in designing financial solutions for their clients.

What are the benefits and differences between a trust and a foundation?

Both work along the same principles, whereby legal ownership is transferred to either the trust or the foundation. The assets are then managed on behalf of the beneficiaries by the trustees (for the trust) and council members (for the foundation).

Who should be looking to create either of the two?

A high net worth individual looking to structure global finances in the most efficient manner in terms of administration, taxation and estate planning. Each case is different and we would advise customers to discuss their requirements with a qualified and
licensed professional to assess what is best for them.

What do you have in terms of personal financial products?

We provide a personal savings plan for expats to save on a monthly basis over the medium to long term, in order to assist them in creating wealth. The value of their plan can then be used to meet a number of events ranging from the buying of a house, children's education fees, family weddings, retirement and so forth. Our savings plans are flexible and are designed to take changing circumstances into account.

We also provide a mortgage protection plan for clients looking at securing a mortgage to buy residential or commercial property. The value of the loan or mortgage is paid out to the mortgage lender in the event of the client's premature death or permanent and total disability.

In addition, we also offer investment vehicles for clients looking to invest a lump sum of money. Clients can choose from over 200 funds managed by over 25 of the world's leading asset managers.

What kind of initial and ongoing training do you provide to brokers?

Friends Provident has in excess of 175 years experience of life insurance. We offer our distribution partners a range of training modules for their advisers. Courses are run on a wide range of industry skills and we work closely with our partners to draw up appropriate training programmes.

Does FPI have its own funds or do you have an external family of fund managers?

We work closely with our sister company, Foreign & Colonial, or F&C, and over 24 other global managers to offer our clients access to more than 200 funds. All major asset classes are covered which means that the needs of the majority of our clients can be met by our retail product range. If a client requires access to a fund that is not included within these 200 funds, we can then offer an open architecture product, called "Reserve", which allows clients to wrap mutual funds and equities within an insurance bond. This reduces the administration (all valuations on one sheet) and centralises assets for tax planning purposes.

That is a lot of funds. What support do you offer your distributors/brokers in terms of knowledge, training? Do you have fund managers visit the region? Do you hold presentations or workshops?

We provide information on all of these funds via our website. We have a number of micro-sites available where our distributors can access in-depth performance information along with videos and blogs from the fund managers themselves. Clients can also access valuations online. We also arrange regular visits to the region from our fund managers allowing our clients and partners access to the experts who manage their money.

What is the philosophy of FPI and how will you develop this in the region?

Friends Provident is a dynamic global life insurance, savings and investment provider, licensed in the UAE, with distribution across the Middle East. Our core values are: integrity in all we do; cooperate to achieve; value people, deal fairly; take personal responsibility; and every customer counts. Friends Provident has a 175-year pedigree in offering quality products that are transparent to distributors and clients and assist in the creation and protection of family wealth. The life insurance industry in the Gulf has a penetration rate of less than one per cent. FPI is excited by the opportunity of working with local partners to develop the market and to raise awareness of the need for life insurance.

PROFILE: Matt Waterfield, General Manager, FPI Middle East

Waterfield has more than 19 years of experience in the financial services industry, 16 of which have been spent specialising in international business. He began his career in the employee benefits arena with Capital Plans in the UK before moving into the individual retail market with Legal & General and then Manulife. In 1991, Waterfield broadened his horizons to focus on the global insurance market and now has the experience of many international markets including Europe, Africa and the Gulf. He has 10 years experience in the Middle East and established Friends Provident International's Middle East regional office in the Dubai Airport Free Zone in 2004 before securing Friends' UAE Federal Insurance licence in 2007.  He enjoys sport, music and spending time with his wife and three children in Dubai.

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