Singapore bank UOB said on Thursday that it renewed its bancassurance tie-up with Prudential Group for 15 years, with the insurer to pay the Singapore bank a fee of 662 million British pounds, or around S$1.15 billion.
Under the deal, UOB will distribute Prudential’s life insurance products to customers in Singapore, Indonesia, Malaysia, Thailand and Vietnam, it said in a filing to SGX on Thursday.
In a separate statement, Prudential said that the agreement added Vietnam as a fifth market and extended the arrangement through 2034, with its products to be distributed via more than 400 UOB branches. Prudential said it would pay the fee, which will be funded via internal resources, in three installments over 2019, 2020 and 2021.
Mike Wells, group chief executive of Prudential, said the tie-up has seen double-digit annual sales and new business profit growth since its start in 2010.
“We believe there is a significant opportunity for future growth in Southeast Asia,” Wells said in the statement.
Wee Ee Cheong, deputy chairman and group CEO of UOB, said that his bank expected to work with Prudential to develop new insurance products for the region’s growing affluent population and its growing number of mobile-first and mobile-only customers.
Prudential’s statement said it would work it aid UOB’s digital bank expansion.
This article was originally published on Thursday, 10 January 2019 at 13:44 SGT; it has since been updated.