As per the deal, Prudential Thailand will offer its suite of health and wealth solutions to TMB Bank’s customer base for an initial term of 15 years
Prudential Thailand forges 15-year bancassurance deal with TMB Bank. (Credit: Wikipedia/BuriramCN/)
Prudential’s Thai subsidiary Prudential Life Assurance (Thailand) or simply Prudential Thailand, has signed a bancassurance partnership worth THB24.5bn ($754m) with TMB Bank.
As per the partnership, the insurer’s suite of health and wealth solutions will be offered to the customer base of the Thai transactional bank for an initial term of 15 years.
Operating for more than 24 years, Prudential Thailand is said to cater to over 1.6 million customers in the country.
Prudential Thailand, through the new partnership with TMB Bank, is expected to gain both the scale and footprint in the life insurance market, which is in line with its goal of becoming a leading player.
According to Prudential, the new bancassurance deal significantly expands and extends its partnership with Thanachart Bank to TMB Bank. Thanachart Bank and TMB Bank are being merged, following which the latter is expected to become the sixth largest bank by deposits and fourth largest bank in terms of number of branches in Thailand.
The UK insurer said that with Thailand being the second largest life insurance market and the largest mutual fund market in the ASEAN region, its subsidiary has considerable growth potential.
Furthermore, the bancassurance partnership is said to strongly complement its top-five market position in the mutual fund market. The UK life insurance firm also expects the deal to deepen its relationship with TMB Bank, which was established through its joint venture asset management partnerships.
Prudential Corporation Asia chief executive Nic Nicandrou said: “This partnership combines TMB’s unrivalled local market knowledge and reach with Prudential’s significant expertise in life, health and savings solutions.
“It will provide Thais with access to a fast growing and expanding digital platform and best-in-class holistic solutions to both protect their families and grow their wealth.”
The bancassurance partnership between Prudential Thailand and TMB Bank will commence next year
The extended partnership agreement will begin from 2021 and until then the existing arrangement with Thanachart Bank will continue, said Prudential.
The agreement would involve the novation of TMB Bank’s current bancassurance distribution deal with another insurance group. Prudential will pay the $754m amount in two installments for the change in arrangements.
TMB Bank chief executive Piti Tantakasem said: “We look forward to taking our life insurance business to the next level with Prudential Thailand, as we provide innovative offerings to customers across the country.
“At the heart of this partnership is a shared commitment to making a difference in our customers’ lives by addressing their unique needs, ultimately enhancing their financial wellbeing and supporting the country’s sustainable development.”