Prudential and UOB extend and expand bancassurance alliance
Prudential, alongside United Overseas Bank, announced the renewal of their regional strategic bancassurance alliance on Thursday.
The FTSE 100 financial services company and the Singapore-based bank said the new agreement extended the original alliance - which began in 2010 - to 2034, and increased the geographical scope to include a fifth market in Vietnam, alongside the existing footprint across Singapore, Malaysia, Thailand and Indonesia.
Under the terms of the renewal, Prudential's life insurance products would be distributed through UOB's extensive network of more than 400 branches in five markets, providing access to more than four million UOB customers.
In addition, Prudential would use its digital capabilities to deliver protection-focussed propositions to aid UOB's digital bank expansion and customer acquisition aspirations.
An initial fee of £662m would be paid under the agreement, which would be funded through internal resources.
“We have built a highly effective bancassurance partnership with our colleagues at UOB that has driven double-digit annual sales and new business profit growth since 2010,” said Prudential group chief executive Mike Wells.
“The extended partnership provides UOB's growing customer base with continued access to Prudential's market-leading and innovative product suite, and demonstrates our commitment to fulfilling the evolving savings and protection needs of consumers.
“We believe there is a significant opportunity for future growth in Southeast Asia and the renewal reflects our commitment to using our capabilities to benefit our customers and shareholders.”
Wee Ee Cheong, deputy chairman and group chief executive officer of UOB, added that the renewed agreement reflected the long-term approach and success of the partnership since 2010.
“UOB is focussed on creating financial solutions in the best interests of customers and which are essential to their lifestyles and life stages.
“We believe that our continued partnership with Prudential will create greater value for our customers and our stakeholders across the region and reinforces our position as the premier ASEAN bank.
“We look forward to working together with Prudential to continue developing unique and innovative insurance solutions for Asia's burgeoning affluent population and its increasing number of mobile-first and mobile-only consumers.”