Sun Life, Bank Rakyat expect to rake in RM150m in premiums

19 Sep 2014 / 05:40 H.
    Sun Life, Bank Rakyat expect to rake in RM150m in premiums
    Mananging director/president of Bank Rakyat Datuk Mustafha Abdul Razak (left) with Mohammad Fikri Mohamad Rawi (right) after the Bank Rakyat and Sun Life Malaysia Takaful Berhad signing ceremony of Strategic Bankatakaful Agreement at Dewan Tun Abdul Razak Menara Kembar Bank Rakyat yesterday. Asyraf Rasid/the sun

KUALA LUMPUR: Sun Life Malaysia Takaful Bhd (SLMT) expects its partnership with Bank Rakyat to rake in RM150 million in premiums this year.
CEO Muhammad Fikri Mohamad Rawi said SLMT, a unit of Sun Life Malaysia, and a joint venture between Canada-based Sun Life Financial Inc and Khazanah Nasional Bhd, managed to grab RM192 million in premiums as of August 2014 since the partnership began in March.
"And in return, Sun Life paid RM28.4 million commission to Bank Rakyat as fee-based income," he said at a press conference after the signing ceremony of strategic bankatakaful agreement between the two parties here yesterday.
Under the bankatakaful agreement, SLMT has expanded the existing collaboration with Bank Rakyat through a new channel of direct and telemarketing (DMTM).
This would allow SLMT to tap into Bank Rakyat's five million customer base in the country.
Over the next three years, Muhammad Fikri is targeting RM24 million as an annual first year premium from DMTM.
"But this year with just a few months left, we expect probably around RM1million to RM2 million," he said, adding that DMTM contributed two-thirds of SLMT's annual first year premium in 2013.
The partnership between the two parties started in March 2013, with the introduction of the Reducing Term Takaful product to provide takaful coverage to Bank Rakyat's personal financing product, namely Al-Aslah which caters to government employees.
A further expansion via DMTM would see the roll out of two initial products – LiveSure Ladies and Sun MediSure-i, and is expected to launch more products moving forward.
For Bank Rakyat, takaful products and wealth management contributed about 59% to the group's fee-based income last year.
Sun Life Malaysia, has two etities in Malaysia, namely SLMT and Sun Life Malaysia Assurance.
This came after the RM1.8 billion acquisition of CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd by Sun Life and Khazanah from Aviva International Holdings Ltd and CIMB Group Holdings Bhd.

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