It may not be a boxing match, but it appears two heavyweights of the insurance industry are set to slug it out for a major distribution deal.
According to a breaking news report from Reuters
today (September 30), both Allianz SE and AXA have advanced to a second stage of bidding for a Standard Chartered distribution deal. If successful, the deal would allow one company to sell general insurance products via the bank’s Asian branches.
Quoting people “familiar with the matter”, Reuters
outlines that Standard Chartered’s existing partner, MS&AD of Japan, as well as another Japanese insurer, are also in the bidding. However, it is not yet clear if MS&AD have qualified for the second round.
Whoever is successful, it is estimated that the deal will be worth around $300 million (approximately £231 million), which is formed on the basis of an upfront payment to access the branch network and the net present value of future commissions and deferred payments, according to the sources.
The bancassurance deal is set to be a hotly contested race, with Standard Chartered to settle on a preferred bidder after the second round.
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