Insurance giant Prudential will pay £662 million to renew a tie-up with Singaporean lender United Overseas Bank until 2034.
The deal, originally signed in 2010, will give the Pru access to more than four million United customers based in Singapore, Malaysia, Thailand, Indonesia and a new territory in Vietnam.
Prudential’s life insurance products will be distributed through United’s 400-strong branch network.
The company, in the midst of a divorce from the Prudential UK arm and fund manager M&G Investments, is well known for its big presence in Asia, especially the Chinese market.
The Pru will make the payment over three years.
Chief executive Mike Wells said: “We believe there is a significant opportunity for future growth in South-East Asia and the renewal reflects our commitment to using our capabilities to benefit our customers and shareholders.”
“We see the move as a positive but not one likely to have a significant impact on the share price,” said Panmure Gordon insurance analyst Barrie Cornes.
