Prudential Forms Strategic Bancassurance Partnership With TMB Bank
March 18 2020 - 9:25PM
Dow Jones News
By P.R. Venkat
A unit of Prudential PLC has entered into a 15-year
bancassurance agreement with Thailand's TMB Bank PCL, a transaction
valued at $754 million.
Under the deal, the U.K. insurer can sell its life insurance
products through the networks of TMB and Thanachart Bank Public Co.
in Thailand from January 2021, Prudential and TMB said in a
statement Thursday.
The agreement means Prudential will replace FWD Life Insurance
Public Co. as TMB's bancassurance partner.
FWD and TMB entered into a 15-year bancassurance agreement in
January 2017.
"The new agreement significantly expands and extends Prudential'
s successful partnership with Thanachart Bank to TMB Bank, which,
following their merger, is the sixth-largest bank by deposits and
fourth-largest bank by branches in Thailand," Prudential said.
Long-term bancassurance agreements in Asia are very attractive
to foreign insurers as the region experiences a rise in the income
of middle-class citizens, many of whom are under-insured.
These agreements typically grant insurers exclusive rights to
sell their products and can be highly valuable to foreign insurers
seeking a foothold in new markets.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
March 18, 2020 21:10 ET (01:10 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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