Prudential to buy FWD banca pact

UK-based Prudential has stated that it would acquire FWD Group’s Thailand bancassurance partnership for THB24.5 billion (USD754 million). The deal will see Prudential’s Thai unit buy the right to sell life insurance products in the south-east Asian country through Bangkok-based TMB Bank, according to a report by the Financial Times.

Prudential will have exclusive rights to sell life insurance products through the network of TMB, which is in the process of merging with Thailand’s Thanachart Bank, for an initial 15 years from the beginning of 2021. The two banks are set to become Thailand’s sixth largest by deposits and fourth largest by the number of branches after the merger, which is due to be completed next year.

Prudential, which has been active in Thailand for more than 24 years and claims more than 1.6m customers, said it would be paying for the Thai partnership in two instalments.