Malaysia’s RHB Banking Group entered into bancassurance and bancatakaful partnerships with Tokio Marine Life Insurance Malaysia ( Tokio Marine Life ) and its takaful partners - Syarikat Takaful Malaysia Keluarga, and its wholly owned subsidiary, Syarikat Takaful Malaysia Am, collectively referred to as Takaful Malaysia.

These partnerships are formalized through separate distribution agreements – between RHB Bank and Tokio Marine Life, and between RHB Islamic and Takaful Malaysia, as well as the framework agreement entered into by all parties.

Under the distribution agreements, RHB will exclusively sell, distribute, market and promote the conventional life insurance products, the family takaful products and the general takaful products developed by Tokio Marine Life and Takaful Malaysia, in Malaysia. The framework agreement is entered into as part of the overall joint operating and governance framework for the banca partnerships.

The exclusive distribution agreements will be for a period of 20 years commencing August 1, at a total access fee payable to RHB of up to 1.6 billion ringgit ( US$373.78 million ). The total access fee reflects the projected insurance and takaful business volume that RHB is expected to generate over the tenure of the distribution agreements, including anticipated sales of products through the bank’s network of branches and digital channels. These will contribute positively to the group’s profit before tax.

“This long-term and exclusive banca partnerships reinforces our commitment to staying relevant to our customers, diversifying our income streams and driving sustainable long-term growth,” says Mohd Rashid Mohamad, the banking group’s managing director and CEO. “By deepening our collaboration, we are able to deliver tailored financial solutions, enhance customer experience and unlock meaningful value for RHB as well as our banca partners. This aligns with our Progress27 strategic priorities, which is already in motion, enabling us to deliver broader value to our stakeholders while driving our non-interest income streams.”