FWD Group (“FWD”) is pleased to announce that today it has reached an agreement with TMB Bank Public Company Limited (“TMB”) to sell its bancassurance contract to Prudential Life Assurance (Thailand) Public Company Limited ("Prudential Thailand") for a consideration of THB20 billion (approximately US$630 million). Under the agreement, the novation will start from 1 April 2020 for a transition period of nine months, with the remaining term of FWD’s bancassurance contract to be entirely transferred to Prudential Thailand on 31 December 2020. During the transition, FWD will continue to offer its products and services to TMB customers. FWD will continue to honour the obligations under, and to service customers who have bought, any FWD insurance policies through TMB for the remainder of their policy terms.
The agreement comes amid FWD’s increasing presence in Thailand. Since the acquisition of ING Life Public Co. Ltd. in 2013, the business has been rebranded as FWD and has grown significantly, generating well over threefold in terms of annual new business premiums, and, with the acquisition of SCB Life Assurance Public Company Limited (“SCB Life”) last year, it now serves more than 2.8 million customers and group members.
Huynh Thanh Phong, FWD Group Chief Executive Officer, commented, “I’d like to thank TMB for their professionalism and long-term support during our collaboration over the past few years. This agreement benefits all parties and, most importantly, means our TMB customers will continue to receive their protection, benefits and customer servicing in accordance with the terms of their FWD policies.”
Piti Tantakasem, Chief Executive Officer of TMB Bank, said, “I am glad that this agreement is a win-win conclusion and is aligned with all parties’ business direction. I would also like to thank FWD for the strong partnership and joint product development through all these years. I assure that TMB and FWD will continue to service its policies purchased by TMB customers going forward.”
The recent acquisition of SCB Life in September 2019 represented the largest ever life insurance transaction in Southeast Asia. Concurrently, Siam Commercial Bank Public Company Limited (“SCB”) and FWD commenced a 15-year bancassurance partnership in Thailand, combining SCB’s significant customer base and leading distribution network with FWD’s innovative product propositions and strong digital capabilities. FWD is in the process of integrating SCB Life with its Thailand business and plans to rename and rebrand SCB Life later this year.
Phong added, “FWD is fully committed to the continued growth of its business in Thailand through our multi-channel distribution strategy and will continue to invest in the market. We see tremendous medium to long-term potential in Thailand to change the way people feel about insurance, by enhancing their digital customer experience and providing access to innovative, affordable and easy-to-understand products and services.”
FWD Group has rapidly established itself as an innovative and dynamic insurer in Hong Kong, Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia. It currently serves more than 7.4 million customers and has more than 6,400 employees across the Asia region.