The deal, for an initial term of 15 years, will allow the bank to provide Prudential's health and wealth solutions to its customer base.
Prudential's Thai subsidiary has entered into a strategic bancassurance partnership with TMB Bank, the firm announced in a statement on Thursday.
The agreement expands Prudential's partnership with Thanachart Bank to THB – the two lenders merged in 2019 to create Thailand's sixth-largest bank by deposits and fourth-largest bank by branches in Thailand, with about 9 million customers. The agreement will commence on 1 January 2021, and until this time Prudential's arrangement with Thanachart Bank will continue.
This agreement requires the novation of TMB Bank's current bancassurance distribution agreement with another insurance group, which will cost Prudential 24.5 billion Thai baht ($754 million), which will be paid in two installments.
Growth Potential
According to the statement, the deal enables Prudential Thailand «to achieve the scale and presence in the life insurance market, consistent with its ambition of being a leading player.»
«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,» Nic Nicandrou, chief executive of Prudential Corporation Asia, said.
Thailand is the second-largest life insurance market and the largest mutual fund market in ASEAN, and has «significant growth potential,» the statement noted.
