RHB-Tokio Marine Bancassurance

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.

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 includes Dai-ichi Life & Nippon Life.

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.