AIA Group has signed a new exclusive 15-year bancassurance deal worth HK$5.07 billion ($650 million) with The Bank of East Asia (BEA), which covers Hong Kong and Mainland China.

As per the terms, Bank of East Asia will distribute the life and long-term savings products of AIA Group exclusively to its retail banking customers.

AIA Group will also acquire BEA Life, a fully-owned subsidiary of Bank of East Asia. The company will also purchase a closed portfolio of life insurance policies that are underwritten by Blue Cross (Asia-Pacific) Insurance.

Bank of East Asia has a network of over 140 outlets across Hong Kong and Mainland China.

AIA Group said that the bancassurance agreement builds on its track record in bancassurance, growing its relationships with domestic banks to eight markets.

The pan-Asian life insurance company said that the addition of Bank of East Asia as a new distribution partner will further consolidate its competitive advantages in the Guangdong-Hong-Kong-Macau Greater Bay Area (the GBA).

Jacky Chan – AIA Group Regional Chief Executive said: “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.

“In particular, our complementary and broad capabilities across the GBA enable AIA and BEA to build a unique partnership and harness the growth potential as the region develops.”

AIA Group and Bank of East Asia will immediately start preparations to launch the insurance distribution partnership. The acquisition of BEA Life is anticipated to be wrapped up by the end of 2021, subject to receipt of the relevant regulatory approvals.

Adrian Li and Brian Li – Co-Chief Executives of Bank of East Asia said: “Our strategy is to drive sustainable income by providing our customers with a compelling range of competitive products through our best-in-class omni-channel bank distribution network.

“AIA has an extraordinary track record in bancassurance and a deep commitment to the GBA. We are delighted that they share our vision and recognise the opportunities presented by our franchise. We look forward to working together in building a leading life insurance sales platform in Hong Kong and Mainland China, focused on serving the future needs of the GBA.”

  Adrian Li, AIA Group, Bank of East Asia, BEA Life, Brian Li, China, Hong Kong, Insurance acquisition news, Insurance industry news, Jacky Chan, life insurance