Prudential Thailand and TMB bank establish bancassurance partnership
Prudential Life Assurance (Thailand), a subsidiary of Prudential, has entered into a strategic bancassurance partnership with TMB Bank Public Company (TMB) with an initial term of 15 years.
The partnership will provide Prudential's suite of health and wealth solutions to TMB’s customer base. The new agreement 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.
Thailand is the second largest life insurance market and the largest mutual fund market in ASEAN, and has significant growth potential. The bancassurance partnership deepens the relationship with TMB established through Prudential's joint venture asset management partnerships, where Prudential has a 12 per cent share of the Thai mutual fund market. Together, both partners now have a platform to deliver holistic health and wealth solutions to 9 million TMB customers equivalent to 17 percent of the country's adult population.
Prudential said 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.
Nic Nicandrou, chief executive of Prudential Corporation 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 of TMB, added: "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.
