SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the
month of March 2020
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation of registrant's name into English)
1 Angel Court, London,
England, EC2R 7AG
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in connection with Rule 12g3-2(b): 82-
PRUDENTIAL THAILAND AND TMB BANK ESTABLISH STRATEGIC BANCASSURANCE
PARTNERSHIP
Acceleration of strategy with addition of a scale life insurance
platform to complement Prudential's strong asset
management position
Prudential Life Assurance (Thailand) Public Company
Limited ("Prudential Thailand"), a subsidiary of Prudential
plc, is pleased to announce it has entered into a strategic
bancassurance partnership with TMB Bank Public Company Limited
("TMB") with an initial term of 15 years to provide Prudential's
leading suite of health and wealth solutions to TMB's large and
growing customer base.
The new agreement significantly expands and extends Prudential's
successful partnership with Thanachart Bank to TMB Bank, which,
following their merger, is the sixth largest bank by deposits and
fourth largest bank by branches in Thailand.
Thailand is the second largest life insurance market and the
largest mutual fund market in ASEAN, and has significant growth
potential. The bancassurance partnership strongly complements
Prudential's top-five market position in the mutual fund
market. It also deepens the strong relationship with TMB
established through Prudential's joint venture asset management
partnerships¹, where Prudential has a 12 per cent share²
of the Thai mutual fund market. Together, both partners now have a
high-quality platform to deliver best-in-class, holistic health and
wealth solutions to 9 million TMB customers equivalent to 17 per
cent of the country's adult population³.
The new strategic partnership with TMB enables Prudential Thailand
to achieve the scale and presence in the life insurance market,
consistent with its ambition of being a leading player. It is also
strongly aligned with TMB's own aspirations of being a partner in
its customers' lives in providing a suite of insurance solutions
and digital services.
Nic Nicandrou, Chief Executive of Prudential Corporation
Asia, said, "We are delighted
to enter into a long-term strategic life insurance partnership with
TMB, further complementing our asset management relationships in
Thailand. This partnership combines TMB's unrivalled local market
knowledge and reach with Prudential's significant expertise in
life, health and savings solutions. It will provide Thais
with access to a fast growing and expanding digital platform and
best-in-class holistic solutions to both protect their families and
grow their wealth. We are also delighted to contribute to
Thailand's economic and social development by investing in local
capital markets and by creating significant employment
opportunities."
Piti Tantakasem, Chief Executive of TMB, said, "We look forward to taking our life
insurance business to the next level with Prudential Thailand, as
we provide innovative offerings to customers across the country. At
the heart of this partnership is a shared commitment to making a
difference in our customers' lives by addressing their unique
needs, ultimately enhancing their financial wellbeing and
supporting the country's sustainable
development."
The extended exclusive partnership agreement will commence on 1
January 2021 and until this time the current arrangement with
Thanachart Bank will continue. This agreement requires the novation
of TMB Bank's current bancassurance distribution
agreement with another insurance group. The change in
arrangements will cost Thai Baht 24.5 billion (equivalent
to USD 754 million based on exchange rate at 18 March
2020) which will be paid in two instalments, with Thai
Baht 12.0 billion due in April 2020 and the remainder on
1 January 2021. The funding for this transaction will utilise a
mixture of Prudential Asia's existing resources and Prudential plc
own resources, potentially also including new debt. In line with
the Group's policy, the amounts described above will be capitalised
as an intangible asset representing distribution
rights.
Enquiries:
Media
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Investors/Analysts
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Erin
Atan
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+852
9308 7962
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Darwin Lam
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+852 2918 6348
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Ee
Ching Tan
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+852 2918 6396
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Patrick Bowes
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+44 (0)20 3977 9702
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Tom
Willetts
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+44 (0)20 3977 9760
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William Elderkin
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+44 (0)20 3977 9215
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About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on
structural growth markets. The business helps individuals to
de-risk their lives and deal with their biggest financial concerns
through life and health insurance, and retirement and asset
management solutions. Prudential plc has 20 million customers and
is listed on stock exchanges in London, Hong Kong, Singapore and
New York. Prudential plc is not affiliated in any manner with
Prudential Financial, Inc., a company whose principal place of
business is in the United States of America, nor with the
Prudential Assurance Company, a subsidiary of M&G plc, a
company incorporated in the United Kingdom.
About Prudential in Thailand
Prudential has operated in Thailand for more than 24 years through
Prudential Life Assurance (Thailand) Public
Company Limited. Prudential
serves more than 1.6 million customers in Thailand and manages more
than Thai Baht 112 billion of assets on their
behalf⁴. In
2019 the Thailand business grew IFRS operating profits by 8 per
cent to USD 170 million and Life Weighted Premium by 8 per cent to
USD 619 million⁵.
About TMB / Thanachart Bank
TMB is a market leader in deposits and digital banking while
Thanachart Bank is a market leader in retail lending, particularly
in the auto hire purchase segment where is ranked No.1 in the Thai
market. After the successful merger with Thanachart Bank, TMB's
operational scale has doubled in size with total assets of Thai
Baht 1.9 trillion and is now the 6th largest bank in Thailand. TMB,
together with Thanachart Bank, has a combined branch network of
over 900 branches nationwide and a customer base more than 9
million.
Footnote
Sources: Association of Investment Management Companies,
International Monetary Fund, Swiss Re, United Nations
¹ In December 2019 Eastspring Investments acquired 50.1 per
cent of Thanachart Fund (with Thanachart Bank, a wholly-owned
subsidiary of TMB, holding the remaining 49.9 per cent). In
September 2018 Eastspring acquired a 65 per cent stake in TMB Asset
Management (now known as TMBAM Eastspring).
² As at 31 December 2019 with assets under management of Thai
Baht 667 billion (USD 21 billion).
³ Estimated Thai population aged 20 years and above as at
2020.
⁴ As at 31 December 2019.
⁵ Life Weighted Premium represents new and renewal regular
premium plus 10 per cent of single premium.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 19 March 2020
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By: /s/ Mark FitzPatrick
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Mark
FitzPatrick
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Group
Chief Financial Officer and Chief Operating Officer
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