Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups

Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups Report Prospectus December 2014 Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 1

Prospectus contents Page What is the research? Which banking groups are covered? Which insurance products are covered? How do country-specific retail banking units covered break down by region and group? What is the report structure? Output example: banking group involvement in bancassurance Output example: unweighted and weighted provider share of partnerships What are the key features of the research? How can the research be used? How can the Partner BASE be used? Who can use the research? What are some of the key findings? What is the cost and format? Country-specific reports about bancassurance How can the research be purchased? 3 4 5 6 7 8 9 10 11 12 13 14-16 17 18 19 Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 2

What is the research? Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups is a report and PartnerBASE dataset that provides a detailed overview of the bancassurance strategies of 150 of the leading consumer banking groups in the Asia-Pacific region. In total, the research investigates 385 country-specific retail banking units since some of these groups are active in retail banking in multiple territories; for example, the study analyses the bancassurance operations of HSBC in a total of 12 countries. For each country-specific unit, it ascertains which of 18 different insurance types are offered, the operating model used where they are available (differentiating, for example, between external, joint venture and captive underwriting partners) and the identity of the insurance providers in each case. This dataset is then used to analyse the bancassurance strategies of each of the 150 retail banking groups. For example: it highlights which groups maintain alliances with insurance providers that can be considered strategic and which work more loosely with a range of providers; it shows whether internationally-diversified groups utilise the same insurance partners across multiple countries in the Asia-Pacific region or whether they formulate their approach at a country-specific level; and it demonstrates which groups are reliant wholly or mainly on captive or joint venture underwriters. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 3

Which banking groups are covered? ABA Bank ACLEDA Bank AEON Financial Services Affin Holdings Agrani Bank Agribank Agricultural Bank of China Agricultural Promotion Bank Allahabad Bank Alliance Financial Group Allied Bank AmBank Group American Express Andhra Bank ANZ Axis Bank Bangkok Bank Bank Danamon Bank Mandiri Bank of Baroda Bank of Beijing Bank of Ceylon Bank of China Bank of Communications Bank of India Bank of Jiangsu Bank of Kyoto Bank of Nanjing Bank of Ningbo Bank of Shanghai Bank of the Philippine Islands Bank of Yokohama Bank Pour Le Commerce Exterieur Bank Rakyat Indonesia BCA BDO Unibank BEA Group Beijing Rural Commercial Bank BIDV BNI BS Financial Group BSN Cambodia Post Bank Canadia Bank Canara Bank Chiba Bank China Bohai Bank China CITIC Bank China Construction Bank China Everbright Bank China Guangfa Bank China Merchants Bank China Minsheng Bank China Zheshang Bank Chong Hing Bank Chongqing Rural Commercial Bank CIMB Group Citigroup Commercial Bank of Ceylon Commonwealth Bank Group Corporation Bank Credit Saison CTBC Financial Holding Dah Sing Banking Group DBS DGB Financial Group DongA Bank Evergrowing Bank Federal Bank Fukuoka Financial Group Government Savings Bank Guangzhou Rural Commercial Bank Habib Bank Hana Financial Group Hatton National Bank HDFC Bank Hiroshima Bank Hokuhoku Financial Group Hong Leong Financial Group HSBC Hua Nan Financial Hua Xia Bank Huishang Bank ICBC ICICI Bank Indian Bank Indian Overseas Bank Industrial Bank Industrial Bank of Korea Islami Bank Bangladesh Janata Bank Japan Post Bank JCB Joyo Bank Kasikorn Bank KB Financial Group Korea Post Bank Krungthai Bank Lao Development Bank Maybank MCB Bank Mega International Commercial Bank Metrobank Mitsubishi UFJ Financial Group Mizuho Financial Group National Bank of Pakistan NH Financial Group Nishi-Nippon City Bank OCBC Orient Corporation Oriental Bank of Commerce People s Bank Philippine National Bank Ping An Bank Postal Savings Bank of China Public Bank Punjab National Bank Rakuten Bank RCBC Resona Holdings RHB Banking Group Rupali Bank Sampath Bank Samsung Card SBI Group Shanghai Commercial Bank Shanghai Pudong Development Bank Shanghai Rural Commercial Bank Shinhan Financial Group Shizuoka Bank Group Shoko Chukin Bank Siam Commercial Bank Sonali Bank Standard Chartered State Bank of India Su Hyup Bank Sumitomo Mitsui Financial Group Syndicate Bank Taishin Financial Holding Taiwan Cooperative Bank Taiwan Financial Holdings UCO Bank Union Bank of India UBL United Bank of India UOB Group Vietcombank Vietinbank Woori Financial Group Yamaguchi Financial Group Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 4

Which insurance products are covered? For each of the 385 country-specific banking units across the 150 groups, the study provides information about provision rates, operating models and provider partnerships for the following 18 insurance types. Accident and health Investment / retirement Creditor Commercial non-life Accident Investment-related life Creditor - consumer finance Professional indemnity Health / hospital cash Retirement savings Creditor - credit cards Trade credit Medical expenses Creditor - mortgages Other commercial non-life Protection-related life Motor and household Other personal non-life Critical illness Household Income protection Card protection Personal motor Risk life Travel Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 5

How do country-specific retail banking units covered break down by region and group? Sri Lanka, 14 South Korea, 25 Singapore, 20 Philippines, 21 Pakistan, 6 Thailand, 15 Taiwan, 16 Vietnam, 15 Bangladesh, 11 HSBC, 17 Cambodia, 17 China, 40 Hong Kong, 26 India, 33 Standard Chartered, 17 Citigroup, 13 AEON Financial Services, 10 ANZ, 9 Bank of China, 9 UOB Group, 6 CIMB Group, 7 DBS, 6 Hana Financial Group, 6 Malaysia, 30 Indonesia, 37 other, 285 Laos, 11 Japan, 48 Source: Finaccord PartnerBASE for the Top 150 Retail Banking Groups in the Asia-Pacific Region Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 6

What is the report structure? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale, description of methodology and some definitions. 2. Group Strategy Overview: this chapter uses data gathered across the 150 banking groups researched for this report in order to give a combined analysis of their bancassurance strategy in the following key areas: captive and joint venture underwriters; strategic and other partnerships with insurance groups; merger and acquisition activity related to bancassurance; insurance products offered. 3. Group Strategy Analysis: for each of the 150 banking groups in turn, this chapter provides a written overview of their retail operations and a summary of their bancassurance strategy in the Asia-Pacific Region, followed by a table illustrating their involvement in bancassurance (see slide 8 for an example) and a pair of pie charts depicting unweighted and weighted provider share of partnerships for insurance products (see slide 9 for an example). Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 7

Output example: banking group involvement in bancassurance Across nine retail banking units in seven countries serving over 300 million customers, Bank of China generated premiums of USD 3.37 billion from its captive and joint venture underwriters in 2013 Group overview Total assets (USD billion) 2,241.7 (December 2013) Customers in Asia-Pacific (million) 306.0 (December 2013) Countries researched 7 Banking operations researched 9 Captive underwriter(s) in Asia-Pacific Yes JV underwriter(s) in Asia-Pacific No Premiums (captive / JV) (USD billion) 3.37 (2013) Unweighted product provision rates Accident and health insurance Creditor insurance Accident insurance 44.4% Creditor insurance - consumer finance 16.7% Health / hospital cash plans 44.4% Creditor insurance - credit cards 0.0% Medical expenses insurance 33.3% Creditor insurance - mortgages 71.4% Motor and household insurance Other personal non-life insurance Household insurance 55.6% Card protection insurance 11.1% Personal motor insurance 44.4% Travel insurance 44.4% Protection-related life insurance Commercial non-life insurance Source: Finaccord PartnerBASE for the Top 150 Retail Banking Groups in the Asia-Pacific Region Critical illness insurance 44.4% Professional indemnity insurance 33.3% Income protection insurance 0.0% Trade credit insurance 22.2% Risk life insurance 55.6% Other commercial non-life insurance 44.4% Investment-related life / retirement savings Investment-related life insurance 55.6% Retirement savings 55.6% Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 8

Output example: unweighted and weighted provider share of partnerships As at December 2014, the main bancassurance partnerships of DBS were with Aviva and MS&AD Manulife, 5.0% AIA, 5.0% Shanghai Alliance Investment, 6.7% MetLife, 6.7% other, 8.3% Aviva, 26.7% Shanghai Alliance Investment, 1.6% MetLife, 1.6% AIA, 1.9% Fubon Financial, 3.3% Minan, 1.3% Manulife, 1.1% other, 1.6% MS&AD, 46.9% Dabur, 8.3% Fubon Financial, 8.3% MS&AD, 25.0% Aviva, 40.6% Unweighted provider share of partnerships, % Weighted provider share of partnerships, % Source: Finaccord PartnerBASE for the Top 150 Retail Banking Groups in the Asia-Pacific Region Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 9

What are the key features of the research? Key features of this research include: a thorough overview of the bancassurance products and partnerships of a total of 385 consumer banking units owned by 150 of the leading retail banking groups in the Asia-Pacific region; for each banking group, an analysis of its insurance providers presented in both unweighted and weighted terms, thereby illustrating not only which partners are engaged in the most product initiatives with that group but which are likely to hold the most valuable relationships given the number of retail customers of the local country unit in question; the first ever ranking by premiums due to captive and / or joint venture insurance entities of banking groups in the Asia-Pacific region with data provided for over 70 groups with their own insurance underwriting subsidiaries; coverage of 18 distinct insurance types in the broad categories of accident and health, commercial, creditor, investment-related life, niche personal, personal non-life and protection-related life; availability of an accompanying PartnerBASE dataset that details close to 2,500 distinct product initiatives and that is fully searchable and filterable, enabling provision and distribution patterns to be explored by banking brand, banking group, country and insurance type. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 10

How can the research be used? You may be able to use this report and the PartnerBASE dataset that accompanies it in one or more of the following ways: gain access to a unique information source that will allow you to arrive at a rapid understanding of the bancassurance strategies of 150 of the leading retail banking groups in the Asia-Pacific region; appreciate which insurance providers have been successful in establishing partnerships with these groups and which of those partnerships can be considered genuinely strategic; comprehend the magnitude of the captive and / or joint venture underwriting businesses of over 70 banking groups in the Asia-Pacific region that have their own insurance subsidiaries; evaluate opportunities to establish bancassurance partnerships across a wide range of insurance products (both life and non-life, personal and commercial) either in a single country or across multiple territories where banking groups are active; benefit from both the broad conclusions contained within the report and the product-specific detail in the PartnerBASE, meaning that this is a study that can be used for both strategic and tactical planning. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 11

How can the PartnerBASE be used? Select banking brand Filter by product Identify partners Banking group Country Banking brand Estimated number of retail customers INVESTMENT-RELATED LIFE INSURANCE Product offered? Operating model Partner(s) HSBC Bangladesh HSBC n/a No HSBC China HSBC 4,921.5 Yes JV underwriter + multiple external underwriters Allianz, HSBC Life, Ping An HSBC Hong Kong Hang Seng Bank 1,750.0 Yes Captive underwriter Hang Seng Insurance HSBC Hong Kong HSBC 950.0 Yes Captive underwriter HSBC Life HSBC Hong Kong Prime Credit 250.0 No HSBC India HSBC 500.0 Yes JV underwriter Canara HSBC Oriental Bank of Commerce Life HSBC Indonesia Bank Ekonomi Raharja 726.8 Yes External underwriter Allianz HSBC Indonesia HSBC 350.0 Yes External underwriter Allianz HSBC Malaysia HSBC 199.5 Yes External underwriter Allianz HSBC Malaysia HSBC Amanah Malaysia 104.5 Yes JV underwriter HSBC Amanah Takaful HSBC Philippines HSBC 100.0 Yes Captive broker HSBC Insurance Brokers HSBC Philippines HSBC Savings Bank 60.0 Yes Captive broker HSBC Insurance Brokers HSBC Singapore HSBC 150.0 Yes Captive underwriter HSBC Insurance HSBC South Korea HSBC 500.0 No HSBC Sri Lanka HSBC 137.5 No HSBC Taiwan HSBC 1,000.0 Yes External underwriter Allianz HSBC Vietnam HSBC 75.0 Yes External underwriter Bao Viet Filter by group Choose country View number of retail customers for each brand See operating model Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 12

Who can use the research? 1. Banking groups: approaches to bancassurance vary enormously across the 150 banking groups investigated if your organisation is reviewing its own strategy in this field then this study will help it to benchmark itself against its peer group in the Asia-Pacific region; 2. Insurance underwriters: this research provides a comprehensive guide to the bancassurance strategies, partnerships and individual product initiatives of 150 major retail banking groups, allowing you to formulate strategy at both regional and country-specific levels; 3. Management consultancies: if you are helping an insurance or banking group with its bancassurance strategy, then this research will summarise the overall landscape in the Asia- Pacific region, saving time and effort on researching the subject yourself; 4. Investment banks: depending upon the regulatory environment, their financial constraints and their strategic intent, banking groups regularly review whether they should develop, buy or divest insurance operations which, naturally, can generate work for the investment banking community. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 13

What are some of the key findings? 1) 77 out of the 150 retail banking groups investigated have at least one captive or joint venture insurance underwriter of which 12 own both types Captive underwriter, 31 none, 73 JV underwriter, 34 Captive + JV underwriter, 12 Source: Finaccord PartnerBASE for the Top 150 Retail Banking Groups in the Asia-Pacific Region Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 14

What are some of the key findings? (cont.) 2) Across the 150 banking groups surveyed, MetLife holds the most bancassurance relationships of any type although other insurers have more joint venture or strategic partnerships Rank Insurance group JV partnerships Strategic Non-strategic partnerships partnerships Source: Finaccord PartnerBASE for the Top 150 Retail Banking Groups in the Asia-Pacific Region Total partnerships 1 MetLife 2 0 46 48 2 Prudential 3 4 31 38 3 MS&AD 2 2 32 36 4 AXA 5 1 29 35 5 BNP Paribas 4 0 27 31 6 Allianz 0 4 23 27 7 AIA 2 3 21 26 8 Tokio Marine 0 0 25 25 9 AIG 0 0 25 25 10 ACE 0 0 24 24 11 Sompo Japan Nipponkoa Group 2 3 18 23 12 China Life 0 0 22 22 13 Sumitomo Life 1 0 21 22 14 Dai-ichi Life 2 2 17 21 15 Nissay 0 0 18 18 16 Aflac 0 0 16 16 17 Meiji Yasuda Life 0 0 16 16 18 Cigna 1 0 15 16 19 CPIC 0 0 15 15 20 Manulife 0 0 15 15 Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 15

What are some of the key findings? (cont.) 3) Key findings from the executive summary include: across the banking groups for which data is available, total premiums written or earned by captives and joint ventures amounted to more than USD 140 billion in 2013 with the 20 largest bancassurers alone accounting for USD 125.9 billion of this figure; with regards to the insurance products offered across the 385 country-specific banking units of the 150 banking groups researched in the region, investment-related life insurance recorded the highest provision rate at 61.3%, followed by household insurance (60.0%), creditor insurance linked to mortgages (at 54.3% overall, although 70.4% among banks actually offering mortgages), risk life insurance (53.8%) and retirement savings (51.4%); at the other end of the spectrum, the lowest provision rates were reported for trade credit insurance (2.6%) and professional indemnity insurance (5.2%); apart from these two specialised commercial insurance types, other low provision rates were recorded for income protection insurance (9.1%) and card protection insurance (11.4%). Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 16

What is the cost and format? Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups is available as a standard PDF document. The PartnerBASE dataset that accompanies it at no further charge is in Excel format. Costs for this research set and other related, multi-country bancassurance titles available already or soon to be available at the time of publication are as follows: REPORT Bancassurance in the Asia-Pacific Region: Strategies of the Region's Top 150 Retail Banking Groups Bancassurance in Sub-Saharan Africa: Current State and Future Perspectives to 2020 Creditor Insurance in the Asia-Pacific Region Creditor Insurance in Europe Creditor Insurance in Latin America Global Bancassurance: Strategies of The World's Top 125 Retail Banking Groups Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance Life Bancassurance in Latin America: Protection-Related Life Insurance PRICE * GBP 2,995 GBP 1,995 GBP 2,495 GBP 4,995 GBP 1,795 GBP 2,995 GBP 1,995 GBP 1,995 GBP 1,795 * Titles focused on bancassurance in single countries are as shown overleaf. For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the next slide for further details. Invoices can be paid in EUR, at the prevailing exchange rate, if preferred. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 17

Country-specific reports about bancassurance Separate reports about bancassurance in different countries are available as listed below. These cover investment-related life insurance and retirement savings, protection-related life insurance, accident and health insurance, motor and household insurance, and creditor insurance linked to mortgages, consumer finance and credit cards. BANCASSURANCE IN... Austria GBP 795 India GBP 995 Portugal GBP 795 Belgium GBP 995 Indonesia GBP 995 Romania GBP 795 Brazil GBP 995 Ireland GBP 795 Russia GBP 995 Chile GBP 995 Italy GBP 995 South Korea GBP 995 China GBP 995 Japan GBP 995 Spain GBP 995 Czech Republic GBP 795 Malaysia GBP 995 Sweden GBP 795 Denmark GBP 795 Mexico GBP 995 Switzerland GBP 795 Finland GBP 795 Netherlands GBP 795 Thailand GBP 995 France GBP 995 Norway GBP 795 Turkey GBP 795 Germany GBP 795 Philippines GBP 995 UK GBP 795 Hong Kong GBP 995 Poland GBP 995 Vietnam GBP 995 * For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 18

How can the research be purchased? Simple. Just go to the relevant area of the Finaccord web site available at www.finaccord.com/order_bancassurance_reports.htm and fill in the online order form, clearly indicating: report required type of corporate user licence, if required * billing name address and e-mail address purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by e-mail. * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers. Finaccord Ltd., 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 19