RHB Banking Group has entered into exclusive distribution partnerships with Tokio Marine Life Insurance Malaysia and Takaful Malaysia, encompassing both conventional and Islamic insurance products.
The agreements, formalised in Kuala Lumpur, will enable RHB to market and distribute a range of life insurance, family takaful, and general takaful solutions through its network and digital platforms across Malaysia for the next two decades.
The arrangements are structured through separate distribution agreements between RHB Bank and Tokio Marine Life, and between RHB Islamic and Takaful Malaysia.
A framework agreement establishes the operational and governance guidelines for the collaboration.
Under these terms, RHB will serve as the sole distributor of the participating insurers’ products, with the exclusivity period commencing Aug. 1.
The total access fee for the 20-year partnership is set at up to RM1.6 billion. This fee is based on projected volumes of insurance and takaful business that RHB anticipates generating, reflecting expected sales through both physical branches and digital channels.
The group expects this arrangement to support its profit before tax over the duration of the agreements.
RHB Banking Group’s leadership described the partnership as a step toward diversifying revenue streams and advancing the group’s long-term business strategy.
“This long term and exclusive banca partnerships reinforces our commitment to staying relevant to our customers, diversifying our income streams and driving sustainable long-term growth. By deepening our collaboration, we are able to deliver tailored financial solutions, enhance customer experience and unlock meaningful value for RHB as well as our banca partners,” said Dato' Mohd Rashid Mohamad, group managing director/group CEO of RHB Banking Group.
Tokio Marine Life Insurance Malaysia’s management indicated that the new phase of collaboration is expected to leverage both Tokio Marine’s expertise and RHB’s established customer relationships.
“This reflects the strength, resilience, and maturity of our partnership – one that we have built over the years of collaboration and shared ambition. We are confident that this next chapter will see us deliver even greater value to the community, combining Tokio Marine’s global insurance expertise with RHB’s local reach and customer trust,” said Toi See Jong, CEO of Tokio Marine Life Insurance Malaysia Bhd.
Takaful Malaysia’s executive team noted that the collaboration is designed to enhance the accessibility of Shariah-compliant protection products and expand the company’s reach within the Islamic finance sector.
“This collaboration positions us to scale our takaful offerings and broaden our footprint within the Islamic financial ecosystem. It reflects our ongoing commitment to making ethical, Shariah-compliant protection more accessible to a wider base of consumers across our key markets,” said Nor Azman Zainal, group CEO of Takaful Malaysia.
The bancassurance announcement follows Tokio Marine Holdings’ release of its financial results for the fiscal year ending March 31, 2025.
The company reported a net income of ¥695.81 billion, up from ¥374.61 billion in the previous fiscal year.
The increase was attributed to improved underwriting results in several international markets, including North America and Brazil, as well as lower natural catastrophe losses in Japan’s property and casualty segment. Additional gains were realized through the sale of business-related equities.
Total revenue for the year rose to ¥7.42 trillion, compared to ¥6.61 trillion the year before.
The company cited growth across multiple business lines and continued implementation of strategic initiatives as key factors.
In light of these results, Tokio Marine Holdings has raised its full-year adjusted net income forecast to ¥1.04 trillion, an increase of ¥40 billion from previous guidance.
For fiscal 2025, the company projects adjusted net income of ¥1.10 trillion, representing a 3% increase year-on-year.
The adjusted return on equity target has been set at 20.7%.
