Prudential and Thanachart Bank have agreed an exclusive 15-year partnership to develop jointly their bancassurance business in Thailand.
In addition, Prudential Thailand will acquire 100% of Thanachart Life Assurance Company, a wholly-owned subsidiary of the bank, for around £358 million.
According to Prudential, life insurance penetration in Thailand remains low at only 2.7% and the transaction builds on the group’s strategy of focusing on opportunities in South East Asia.
For Thailand, bancassurance has been the main driver of growth in recent years and Thanachart Bank is the country’s fifth-largest retail bank, with over four million customers and around 630 branches.
It is also ranked among the top-10 life insurers in Thailand, with around one million in-force policies.
The transaction is subject to regulatory approval and is expected to close in the first quarter of 2013.