Prudential Thailand announces Bancassurance partnership with TMB
Prudential Life Assurance (Thailand) has announced the formation of a strategic bancassurance partnership with TMB Bank.
The partnership has been signed for an initial period of 15 years, according to a press release, and will offer the bank’s clients Prudential’s life insurance products and services.
The announcement significantly expands and extends Prudential’s 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, according to a press release by Prudential.
Thailand is the second largest life insurance market and the largest mutual fund market in ASEAN with significant growth potential. With Prudential sharing that the bancassurance partnership strongly complements Prudential’s top-five market position in the mutual fund market.
It also deepens the strong relationship with TMB established through Prudential’s joint venture asset management partnerships, where Prudential have a 12% share of the Thai mutual fund market. Together, both partners now have a high-quality platform to deliver best in class, holistic health and wealth solutions to 9 million TMB customers equivalent to 17% of the country’s adult population.
The new strategic partnership with TMB enables Prudential Thailand to achieve the scale and presence in the life insurance market, consistent with its ambition of being a leading player. It is also strongly aligned with TMB’s own aspirations of being a partner in its customers’ lives in providing a suite of insurance solutions and digital services.
Nic Nicandrou, Chief Executive, Prudential Asia, said “We are delighted to enter into a long-term strategic life insurance partnership with TMB, further complementing our asset management relationships in Thailand. 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. We are also delighted to contribute to Thailand’s economic and social development by investing in local capital markets and by creating significant employment opportunities.”
Piti Tantakasem, Chief Executive, TMB Bank, 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.”
The extended exclusive partnership agreement will commence on 1 January 2021 and until this time the current arrangement with Thanachart Bank will continue, according to Prudential. This agreement requires the novation of TMB Bank’s current bancassurance distribution agreement with another insurance group.
Prudential has operated in Thailand for more than 24 years through Prudential Life Assurance (Thailand) Company, serving more than 1.6 million customers in Thailand and manages more than Tbh112 billion of assets on their behalf.