Hong Kong-based AIA Group has struck a 15-year strategic partnership with The Bank of East Asia (BEA). Under the agreement signed between the two organizations, AIA will be paying $650 million to BEA for exclusive life insurance distribution partnership and for the acquisition of 100 percent of BEA Life Limited, a wholly-owned subsidiary of BEA.
In this partnership, BEA will be distributing AIA’s life and long-term savings products on an exclusive basis to its retail banking customers. The partnership will add AIA’s proven bancassurance expertise to BEA’s network of over 140 outlets in Hong Kong and Mainland China.
“This transaction brings together two trusted financial institutions with a long history of operating in Hong Kong and Mainland China, who are aligned in the pursuit of sustainable growth powered by digital and technological transformation. It enables us to bring our in-branch sales expertise and range of quality protection and long-term savings products to BEA’s loyal customer base, with an opportunity to unlock significant growth potential for both companies,” said Jacky Chan, AIA’s Regional Chief Executive.
BEA has a formidable presence across Asia with over 1.2 million domestic customers and has the potential to dig deeper in life and health insurance. It is amongst the top three foreign banks in terms of the number of personal banking branches, operating across 22 provinces and with a fast-growing, affluent customer base in Mainland China.
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