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Aetna Trust prepares to snap up drop-outs

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Enoch Yiu

Aetna Trust, the SAR pension arm of US-based Aetna Group, will consider acquiring other Mandatory Provident Fund (MPF) providers if they decide to leave the market, according to managing director David Hatton.

Aetna is one of the MPF services providers that will next month start to sell fund products to the 300,000 companies that do not already have a pension scheme.

Mr Hatton said the company would use the 25,000 agents of its sister insurance company, Aetna Life, to sell the MPF products.

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Aetna would be interested in taking over other MPF companies as a way of expanding in the market, he said.

Citibank last week decided to scrap its plan to sell MPF products, ahead of the start-up of sales from February 1.

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The company's withdrawal was because of the expected fierce competition in the MPF market.

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