MoU gives bank 10-year right to sell insurer's plans while latter pays $30mln exclusivity fee.
RHB Bank Bhd has entered into a memorandum of understanding (MoU) with TM Asia Life Malaysia Bhd to negotiate the terms for forming a mutually exclusive 10-year bancassurance alliance in Malaysia to sell, market and promote conventional life insurance products developed by latter.
RHB Bank is a wholly-owned subsidiary of RHB Capital Bhd and TM Asia Life.
In a statement to Bursa Malaysia, RHB Capital Bhd said RHB Bank had the right to sell to any party or persons including but not limited to RHB Bank's customers under the proposed exclusive bancassurance arrangement via the bank's network of offices, branches and other alternative distribution channels jointly developed by TM Asia and RHB Bank.
Under the MoU, TM Asia Life will pay an exclusivity fee of RM100mil ($29.75 million) and RHB Bank commits to a 10-year exclusive bancassurance relationship with TM Asia Life starting from the signing of the documents.
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