RHB inks RM1.62bil insurance, takaful deals with Tokio Marine and Takaful Malaysia
Under the arrangement, RHB Bank will exclusively distribute conventional life insurance products from Tokio Marine Life, while its wholly owned subsidiary RHB Islamic Bank Bhd will handle the distribution of family and general takaful products developed by Syarikat Takaful Malaysia Keluarga Bhd (STMKB) and its subsidiary, Syarikat Takaful Malaysia Am Bhd.
The parties also entered into a framework agreement to govern the overall structure and coordination of the banca partnerships.
In a filing with Bursa Malaysia, RHB said the RM1.62bil-access fee reflects the projected insurance and takaful business volume to be generated over the tenure of the agreements, including sales through its branch network and digital platforms.
'This includes anticipated sales of insurance and takaful products through the bank's branch network and digital channels, based on the historical performance of the existing partnership and forward-looking growth assumptions,' it said.
Proceeds from the access fee will be used to meet working capital needs and support the group's future growth initiatives.
RHB said the partnership will provide an attractive upfront contribution to profit, long-term revenue visibility and the ability to build on existing operational and technological integration with its insurance partners.
In a separate filing, STMKB said while the arrangement is not expected to have a material impact on its earnings for the financial year ending Dec 31, 2025, the partnership is anticipated to contribute positively to the group's future earnings.
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RHB inks RM1.62bil insurance, takaful deals with Tokio Marine and Takaful Malaysia
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