FRANKFURT • German insurer Allianz and Standard Chartered Bank yesterday announced a 15-year agreement to distribute Allianz's general insurance products in Hong Kong, Singapore, Malaysia, Indonesia and China.
The deal to distribute travel, personal accident, fire and motor insurance products to Standard Chartered's retail banking clients will start this year, the companies said in a joint statement.
Allianz, Europe's biggest insurer, agreed to pay about US$200 million (S$285 million) upfront for the rights to distribute general insurance products through Standard Chartered outlets in Asia, sources told Bloomberg.
Standard Chartered expects to receive at least US$1 billion in payments over the 15-year life of the bancassurance agreement, including profit-sharing, the people said, asking not to be identified because the information is private, Bloomberg reported quoting the sources.
Ms Karen Fawcett, Standard Chartered's chief executive (CEO) for retail banking, said in a statement: "Bancassurance is a key focus for Standard Chartered, as we continue to innovate and expand our offerings that meet the evolving needs of our clients in branches and online."
Asia's demand for non-life insurance is expected to grow by 10.8 per cent a year over the next four years, reaching US$280 billion by 2020, the companies said.
"This partnership builds on our shared commitment towards the growth and development of Asia, which is in line with Allianz's ambitions to expand our presence regionally," Mr George Sartorel, regional CEO of Allianz in Asia Pacific, said. Allianz is interested in takeovers, including in the United States and Europe, as a way to grow, Reuters said in a report.
Global insurers have been seeking to distribute their products through lenders with large Asian branch networks in deals that also benefit banks trying to expand non-interest income.
In 2015, Manulife Financial, Canada's largest life insurer, agreed to pay $1.6 billion for DBS Group Holdings to sell its products in Singapore, Hong Kong, China and Indonesia.
The agreement between London-based Standard Chartered and Germany's Allianz includes travel, personal accident, fire and motor insurance products, according to the statement. Other bidders for the Standard Chartered insurance rights included AXA and a unit of Japan's MS&AD Insurance Group Holdings, people with knowledge of the matter said in August.