RHB Bank of Malaysia is reportedly soliciting proposals from financial advisors regarding its insurance sales partnership within its branches as its existing arrangement with a subsidiary of Japan’s Tokio Marine Holdings Inc is set to conclude at the close of the upcoming year.
The current bancassurance collaboration is with Tokio Marine Life Insurance Malaysia, whose parent company has initiated the process to sell its life insurance business in Southeast Asia. As it encompasses both traditional and Islamic life insurance, the potential value of this deal could exceed RM1 billion, according to sources in a report from The Edge Malaysia.
Reports earlier this year indicated that Tokio Marine Holdings’ Southeast Asia life business could be valued at approximately US$1 billion (RM4.69 billion) in a deal. Several potential suitors have expressed interest, including Dai-ichi Life Holdings and Nippon Life Insurance.
Presently, discussions are ongoing, and RHB retains the option to enter into a new agreement with Tokio Marine before the current one expires. A spokesperson from Tokio Marine stated that no final decisions have been made, and a representative from RHB Bank mentioned that the company will provide updates in due course.
The Kuala Lumpur-based bank inked a 10-year bancassurance deal with Tokio Marine in 2015. This agreement mandates RHB Bank to exclusively market, distribute, and promote Tokio Marine’s conventional life insurance products within a defined period, according to a stock exchange filing. This 10-year arrangement succeeded their earlier distribution pact signed in 2010, as per the disclosed filing.
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