RHB Banking Group has entered a bancassurance and bancatakaful partnership with Tokio Marine Life Insurance coverage Malaysia and Takaful Malaysia for 20 years.
RHB will solely promote, market and distribute Tokio Marine Life and Takaful Malaysia’s life insurance coverage and takaful merchandise in Malaysia.
The distribution agreements will see RHB Financial institution collaborate with Tokio Marine Life, and RHB Islamic work in tandem with Takaful Malaysia.
That is half of a bigger framework settlement that outlines the operational and governance construction for the partnerships.
Tokio Marine Life Insurance coverage Malaysia CEO Toi See Jong stated: “We’re assured that this subsequent chapter will see us ship even higher worth to the group, combining Tokio Marine’s international insurance coverage experience with RHB’s native attain and buyer belief.”
The deal features a Whole Entry Payment of as much as RM1.6bn, payable to RHB.
This charge corresponds to the anticipated quantity of enterprise that the financial institution will generate by way of the gross sales of those insurance coverage and takaful merchandise over the course of the agreements.
The partnerships are anticipated to have a constructive impact on RHB’s revenue margins earlier than tax, the joint press launch stated.
RHB Banking Group MD and CEO Dato’ Mohd Rashid Mohamad said: “This long-term and unique banca partnerships reinforces our dedication to staying related to our prospects, diversifying our revenue streams and driving sustainable long-term progress.
“This aligns with our PROGRESS27 strategic priorities, which is already in movement, enabling us to ship broader worth to our stakeholders whereas driving our non-interest revenue streams.”
Lately, Tokio Marine Holdings disclosed plans to rebrand its subsidiary E.design Insurance coverage to enhance progress in Japan’s direct auto insurance coverage market.
