RHB Banking Group has entered a bancassurance and bancatakaful partnership with Tokio Marine Life Insurance Malaysia and Takaful Malaysia for 20 years.  

RHB will exclusively sell, market and distribute Tokio Marine Life and Takaful Malaysia’s life insurance and takaful products in Malaysia. 

The distribution agreements will see RHB Bank collaborate with Tokio Marine Life, and RHB Islamic work in tandem with Takaful Malaysia.  

This is part of a larger framework agreement that outlines the operational and governance structure for the partnerships. 

Tokio Marine Life Insurance Malaysia CEO Toi See Jong said: “We are confident that this next chapter will see us deliver even greater value to the community, combining Tokio Marine’s global insurance expertise with RHB’s local reach and customer trust.” 

The deal includes a Total Access Fee of up to RM1.6bn, payable to RHB.  

This fee corresponds to the expected volume of business that the bank will generate through the sales of these insurance and takaful products over the course of the agreements. 

The partnerships are expected to have a positive effect on RHB’s profit margins before tax, the joint press release said.  

RHB Banking Group MD and CEO Dato’ Mohd Rashid Mohamad stated: “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.  

“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.” 

Recently, Tokio Marine Holdings disclosed plans to rebrand its subsidiary E.design Insurance to improve growth in Japan’s direct auto insurance market.