Prudential plc (“Prudential”) and Standard Chartered PLC (“Standard Chartered”) are pleased to announce they have entered into a new agreement expanding the term and geographic scope of their strategic pan-Asian bancassurance partnership.
The new 15-year agreement, which covers 11 markets and will commence on 1 July 2014, deepens a relationship that was first established in 1998, and has become the most successful and enduring pan-regional bancassurance partnership in Asia.
Under the terms of the new agreement, a wide range of Prudential's life insurance products will be exclusively distributed through Standard Chartered branches in 9 markets — Hong Kong, Singapore, Indonesia, Thailand, Malaysia, the Philippines, Vietnam, India and Taiwan — subject to applicable regulations in each country. In China and South Korea, Standard Chartered will distribute Prudential's life insurance products on a preferred basis.
As part of the intent to deepen the strategic bancassurance partnership further, Prudential and Standard Chartered have also agreed to explore additional opportunities to collaborate, in due course, elsewhere in Asia and in Africa, subject to existing exclusivity arrangements and regulatory restrictions. This reflects both Prudential’s desire to expand its presence in emerging markets and Standard Chartered's strategic aspiration “To bank the people and companies driving investment, trade and the creation of wealth across Asia, Africa and the Middle East.”
Tidjane Thiam, Group Chief Executive, Prudential plc, said: “Our partnership with Standard Chartered has delivered substantial benefits to both companies’ customers and shareholders over the last 15 years. Standard Chartered is one of the strongest, most respected and largest emerging markets banks in the world and we are proud to be its partner. The results we have achieved in Asia speak for themselves. The business we have built together has achieved significant growth, delivering compound annual sales growth of 19 per cent over the last decade. Our teams know and respect each other and work well together. That is why we are confident that we will continue to provide valuable products and services to millions of consumers across Asia, generating significant value for our shareholders in doing so. We are also excited by the prospect of bringing the skills of both organisations to other fast-growing emerging markets, where demand for savings and protection is very strong.”
Peter Sands, CEO of Standard Chartered, said: “Our aspiration is to be recognised as a leader in growing and protecting our clients’ wealth, with a specific aim to double our AUM to $300 billion by 2020. The extension of the agreement with Prudential, both in terms of duration and geographical reach, is reflective of the highly successful partnership developed between the two organisations over 15 years. Our clients will have access to a wide range of Prudential’s market-leading savings and protection products, tailored to meet their diverse financial needs. This agreement highlights the value inherent in our powerful distribution capability across some of the fastest-growing markets in the world. We are excited by the future prospects for the relationship.”