KUALA LUMPUR: CIMB Group Holdings Bhd (CIMB Group) expects a healthy contribution to its insurance business on the back of the partnership with Japan-based Sompo Holdings (Asia) Pte Ltd.
The two entities today launched its bancassurance partnership in Malaysia whereby CIMB will distribute Sompo’s non-life insurance solutions through its distribution network.
CIMB Group chief executive officer (CEO) Tengku Datuk Seri Zafrul Aziz said the launch marks next level of the entities’ 15-year partnership from 2016.
“Today marks the launch of the Malaysian partnership with Japan’s number one bancassurance insurer, Sompo after the successful execution of Indonesia and Singapore in 2017, and Thailand later in 2020,” he said.
“Through this collaboration, Sompo will be able to leverage on CIMB strong brand presence and wide distribution on the Asean region with access to a population of some 650 million people.”
CIMB group consumer banking CEO Samir Gupta later shared at the press conference that the group had set a target of RM200 million in gross written premiums (GWP) target from the partnership this year.
“We have set a RM200 million in GWP for this year and we are pleased to say that we have already achieved RM26 million of that since rolling out the products two months ago,” said Samir.
“As of the end of last year, the insurance business, life and general collectively has contributed some RM140 million in revenue to the Malaysian businesses. We are expecting this partnership with Sompo will yield healthy contributions to us over the medium to long term.”
Tengku Zafrul had said the partnership with Sompo will yield RM1 billion in revenue for the group within the first five years. It would come from fees for the distribution network as well as sales.
“The revenue target of RM1 billion is still intact and we are on track to achieve that,” said Samir, when asked.
Sompo is the Southeast Asian holding company for Japan’s Sompo Japan Nipponkoa Insurance Inc.
It is currently in 10 countries inclusive of Malaysia, Singapore, Indonesia and Thailand with over 3,500 employees across the region and total of GWP in excess of US$700 million.