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UK insurance group Aviva, the world's fifth-largest insurer, has signed another major bancassurance deal, this time in fast-developing Malaysia with the country's second-largest retail bank, CIMB. Last year its Asian portfolio grew 91 percent, largely through distribution deals with banks, writes Titien Ahmad
Aviva, the world's fifth-largest insurance group, and Malaysia's CIMB Group, the country's second-largest banking group after Maybank, have had their proposed joint venture approved by the country's central bank, Bank Negara Malaysia.
The deal is another in a long series of similar bancassurance tie-ups in Asia by Aviva as it looks to expand into the region's high-growth insurance markets. Last year its Asian port-folio grew 91 percent, largely through deals with banks throughout the region.
Aviva is acquiring a 49 percent equity interest in two of CIMB Group's subsidiaries, Commerce Life Assurance and Commerce Takaful, for a total cash consideration of MYR500 million ($150 million). In addition, Commerce Life and Commerce Takaful will enter into exclusive bancassurance agreements with CIMB Group's subsidiary, CIMB Bank, Malaysia's second-largest retail bank in terms of assets, for the distribution of life and Sharia-compliant takaful insurance products through the bank's 383 branches. CIMB Bank has the largest branch network in Malaysia and has over 4.5 million customers.
Regional experience
Aviva has regional experience in large-scale bancassurance agreements - it has a similar partnership with DBS,...