Prudential Life Assurance (Thailand) has entered into a bancassurance partnership with TMB Bank (TMB).
The deal will be an initial term of 15 years to provide Prudential’s suite of health and wealth solutions to TMB’s clients.
The agreement expands and extends Prudential’s partnership with Thanachart Bank to TMB Bank following their merger.
The deal requires the end of TMB Bank’s current bancassurance distribution agreement with FWD Group.
Details
Under the agreement, the “novation” will start from 1 April 2020 for a transition period of nine months, with the remaining term of FWD’s bancassurance contract to be entirely transferred to Prudential Thailand on 31 December 2020.
During the transition, FWD will continue to offer its products and services to TMB customers.
FWD will continue to honour the obligations under, and to service customers who have bought, any FWD insurance policies through TMB for the remainder of their policy terms.
The change in arrangements will cost THB24.5bn (£650m, $750m, €697m) which will be paid in two instalments, with THB12.0bn due in April 2020 and the remainder on 1 January 2021.
The funding for this transaction will be a mixture of Prudential Asia’s existing resources and Prudential plc resources, potentially also including new debt.
Grow wealth
“This partnership combines TMB’s unrivalled local market knowledge and reach with Prudential’s significant expertise in life, health and savings solutions,” Nic Nicandrou, chief executive of Prudential Asia, said.
“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.”
