RHB, Tokio Marine Ink 20-Year Bancassurance Deal Worth RM1.6bn
RHB Banking Group has inked a 20-year bancassurance and bancatakaful partnership with Tokio Marine Life Insurance Malaysia and Takaful Malaysia. The deal, valued at up to RM1.6bn in Total Access Fee, is set to drive non-interest income streams for RHB and boost community impact, as expressed by Dato' Mohd Rashid Mohamad, MD and CEO of RHB Banking Group, and Tokio Marine Life's CEO, Toi See Jong.
The partnership, part of a larger framework agreement, will see RHB Bank collaborate with Tokio Marine Life, and RHB Islamic work with Takaful Malaysia. RHB will exclusively sell, market, and distribute the partners' life insurance and takaful products in Malaysia. This strategic move aligns with RHB's PROGRESS27 priorities and is expected to positively impact its profit margins before tax.
Meanwhile, Tokio Marine Holdings, the parent company, has plans to rebrand its subsidiary E.design Insurance to capture growth opportunities in Japan's direct car insurance market. While the CEO of E.design Insurance is not explicitly named, Masahiro Koike, Group CEO of Tokio Marine Holdings, leads the overall group including its expansions and initiatives.
The 20-year partnership between RHB Banking Group, Tokio Marine Life Insurance Malaysia, and Takaful Malaysia is poised to bring mutual benefits. RHB gains new income streams and potential profit margin boost, while Tokio Marine Life and Takaful Malaysia expand their reach through RHB's exclusive distribution. The deal's Total Access Fee of up to RM1.6bn reflects its significant value and potential for greater community impact.
