ALLIANZ AND HSBC SIGN 10-YEAR AGREEMENT
Source: Allianz Life Insurance Malaysia Bhd Press Release, 26 October 2012
Allianz and HSBC announced signing a 10-year exclusive bancassurance distribution agreement for life insurance in Asia. Allianz life insurance products will be distributed by HSBC in China, Indonesia, Malaysia, Australia, Sri Lanka and Taiwan. Life insurance products will be provided by strategic partners of Allianz in Brunei and the Philippines. The upfront cash consideration by Allianz amounts to USD 100.5 million (RM306.88 million).
The agreement allows Allianz to enlarge its bancassurance distribution reach to an additional segment of retail banking customers in its major growth markets in Asia Pacific. Bancassurance is a significant distribution channel for Allianz life insurance in Asia. In 2011 around 40 percent of gross written premiums in life insurance derived from this channel.
Both Allianz and HSBC are global leaders with the local expertise necessary to support their focus on outstanding customer service. Allianz Group has been a Preferred Strategic Partner globally for HSBC since 2008. Allianz has a wide range of partnerships with HSBC in Asia, including life and health insurance, credit insurance as well as asset management.
As part of the overall strategic partnership the assets and liabilities, other than the statutory deposits of approximately USD 10 million (RM30.50 million), of HSBC Life (International), Taiwan Branch, will be transferred to Allianz Taiwan Life Insurance for a consideration of USD 18 million (RM54.96 million).
USD1.00 = RM3.06