Exclusive Bancassurance Agreement in Malaysia
Tokio Marine Holdings, Inc.
2-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo
TSE code number: 8766
- Management
Tokio Marine Life Insurance Malaysia Bhd. (hereinafter "TMLM"), a subsidiary of Tokio Marine Holdings, Inc. (hereinafter "TMHD", President: Shuzo Sumi), has reached an Exclusive Bancassurance Agreement with RHB Bank Bhd. (hereinafter "RHB"), one of the largest commercial banks in Malaysia.
Under this Agreement, RHB will promote, via its branches and alternative distribution channels, TMLM's life insurance products exclusively. TMLM and RHB have targeted an annual first year premium (hereinafter "AFYP") of RM266 million (USD82 million) in first contract year and AFYP of RM547 million (USD168 million) in tenth contract year. Each AFYP represents to approximately 1.5 times, 3 times of the performance of TMLM in 2009 respectively. With this agreement, it aspires to become the top 5 of life insurance companies in Malaysia with more than 6% market share for 2015.
Tokio Marine Group has acquired Asia General Holdings Ltd., which had both life and general insurance subsidiaries in Malaysia and Singapore, and taken over a general insurance operation of PanGlobal Insurance Bhd., a general insurance company in Malaysia. Through this agreement, we expect to expand and strengthen our insurance business operations in Malaysia.
In addition, to harness the strength of "Tokio Marine" brand in Asia region, TMLM has changed the company name of "TM Asia Life Malaysia Bhd." to "Tokio Marine Life Insurance Malaysia Bhd." on June 22nd. TM Asia Life Singapore Ltd., a life insurance subsidiary in Singapore, will also change the company name to "Tokio Marine Life Singapore Ltd." around September.
Tokio Marine Group expects to develop its insurance business operations and aspires for mid and long term growth in Asia region with high growth potential.
- Summary of RHB (As of December 31st)
- Company Name: RHB Bank Bhd.
Head Office: Kuala Lumpur
Capital: RM3,318 million (USD1,021 million)
Total Assets: RM94,045 million (USD28,937 million) [The 4th-largest in Malaysian banks]
- Summary of TMLM (As of December 31st)
- Company Name: Tokio Marine Life Insurance Bhd.
Head Office: Kuala Lumpur
Capital: RM100 million (USD31 million)
Total Assets: RM4,439 million (USD1,366 million)
TMHD's voting rights ratio: 79.55%
AFYP: RM179 million (USD55 million) [Market share: 2.4%, Ranked 12th in AFYP]
(Exchange rate: USD1.00= RM3.25)
