Prudential Thailand has finalised a bancassurance agreement with TMB Bank that is worth THB24.5bn ($754m).

Under the agreement, the bank will offer the insurer’s suite of health and wealth solutions to its customer base for an initial term of 15 years.

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Prudential Thailand is said to cater to over 1.6 million customers in the country.

Prudential, through this bancassurance deal, hopes to gain both the scale and footprint in the life insurance market of Thailand.

Prudential Corporation Asia chief executive Nic Nicandrou said: “This partnership combines TMB’s unrivalled local market knowledge and reaches with Prudential’s significant expertise in life, health and savings solutions.

“It will provide Thais with access to a fast-growing and expanding digital platform and best-in-class holistic solutions to both protect their families and grow their wealth.”

The new deal extends Prudential’s alliance with Thanachart Bank to TMB Bank, which has merged.

The bancassurance agreement will commence in 2021.

Until then the existing arrangement with Thanachart Bank will continue, Prudential said.

The agreement requires TMB Bank to replace its existing bancassurance distribution deal with another insurance group.

Prudential will pay the $754m amount in two instalments for the change in arrangements.

TMB Bank chief executive Piti Tantakasem said: “We look forward to taking our life insurance business to the next level with Prudential Thailand, as we provide innovative offerings to customers across the country.

“At the heart of this partnership is a shared commitment to making a difference in our customers’ lives by addressing their unique needs, ultimately enhancing their financial wellbeing and supporting the country’s sustainable development.”