StanChart, Prudential tie up for bancassurance

Standard Chartered has entered into an agreement with Prudential Plc to expand the term and geographic scope of their strategic pan-Asian bancassurance partnership.

StanChart CEO Peter Sands said this move would help beef up their asset under management (AUM) in the coming years.

“Our aspiration is to be recognized as a leader in growing and protecting our clients’ wealth, with a specific aim to double our AUM to $300 billion by 2020,” he said.

“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 organizations over 15 years,” he said.

“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,” he added.

The new 15-year agreement will cover 11 markets and will commence July 1 this year. It 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 StanChart branches in nine 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, StanChart 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 StanChart 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 StanChart’s strategic aspiration “To bank the people and companies driving investment, trade and the creation of wealth across Asia, Africa and the Middle East.”

For his part, Prudential Group chief executive Tidjane Thiam 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 percent over the last decade. Our teams know and respect each other, and work well together,” Thiam said.

“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.”

StanChart is a leading international banking group, with more than 86,000 employees and a 150-year history. It is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.