Insurance goliath Prudential has entered into a long-term exclusive bancassurance partnership in Thailand with Thai firm Thanachart Bank.
The deal between the two involves the Pru buying the Thanachart Life Assurance Company from Thanachart, the fifth larges retail bank in Thailand, for £358m in cash. A further £10m is to be stumped up 12 months after the acquisition completes, subject to a post-completion agreement once the net asset value of the acquired business has been determined.
The deal gives Pru greater exposure to the fast growing life assurance market in Thailand, which is similar in size in terms of premiums earned to both Indonesia and Malysia.
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For Thanachart Bank, the Pru will provide additional training and sales tools to Thanachart staff, while the business's insurance customers will have access to a comprehensive range of protection and savings products.
"This long-term exclusive partnership with Thanachart Bank positions us well for the future and is in line with our multichannel distribution strategy. We continue to invest and grow our partnership business, alongside our well established and successful agency workforce," said Tidjane Thiam, the Group Chief Executive of the Pru.
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