Prudential expands partnership with Thailand's TMB Bank
Prudential
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16:44 25/04/24
Prudential announced on Thursday that its Thailand subsidiary was entering into a strategic bancassurance partnership with TMB Bank, with an initial term of 15 years, to provide its suite of health and wealth solutions to TMB's “large and growing” customer base.
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The FTSE 100 company said the new agreement would significantly expand and extend its partnership with Thanachart Bank to TMB Bank, which, following their merger, is the sixth largest bank by deposits and the fourth largest bank by branches in Thailand.
It explained that Thailand is the second largest life insurance market and the largest mutual fund market in the ASEAN group of nations, and had “significant” growth potential.
The bancassurance partnership would “strongly complement” Prudential's top-five market position in the mutual fund market.
It also said it would deepen the “strong relationship” with TMB, established through Prudential's joint venture asset management partnerships where Prudential has a 12% share of the Thai mutual fund market.
The board said that together, both partners now had a high-quality platform to deliver “best-in-class, holistic health and wealth solutions” to nine million TMB customers, equal to 17% of the country's adult population.
Prudential said the new strategic partnership with TMB would enable Prudential Thailand to achieve scale and presence in the life insurance market, consistent with its ambition of being a leading player.
It was 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.
“We are delighted to enter into a long-term strategic life insurance partnership with TMB, further complementing our asset management relationships in Thailand,” said Prudential Corporation Asia chief executive officer Nic Nicandrou.
“This partnership combines TMB's unrivalled local market knowledge and reach with Prudential's significant expertise in life, health and savings solutions.”
Nicandrou said it would 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 that the company was “looking forward” to taking its life insurance business to “the next level” with Prudential Thailand.
“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.”
At 1341 GMT, shares in Prudential were down 1.46% at 700.4p.