Hong Kong-based AIA Group Ltd. entered into a 15-year bancassurance agreement with Thailand's Bangkok Bank PCL.
Under the agreement, Bangkok Bank will distribute AIA Thailand's protection and long-term savings products to its customers on an exclusive basis. The company noted that the agreement does not cover certain endowment savings and credit life products.
AIA said the agreement will become effective in the first half of 2018 and the new arrangements will be implemented over time. Revenue to Bangkok Bank from the agreement will be variable in nature and dependent on future profitable new business, the company added.
In a separate statement, Bangkok Bank said it was advised by Citigroup Global Markets Asia. AIA was advised by Evercore Partners International LLP.