KUALA LUMPUR (Dec 21): AIA Group Ltd and Public Bank Bhd have extended their exclusive regional bancassurance partnership by 15 years to 2037.

AIA said this reflects the strength and success of the existing partnership, and will enable Public Bank to provide its customers with a broadened range of high-quality life insurance protection and long-term savings solutions from the leading Asian life insurance group.

"Over the next 20 years, AIA and Public Bank will work together, building on the significant progress already achieved, to increase the penetration of life and health insurance across Public Bank's more than nine million customers," said AIA in a statement.

AIA group chief executive and president Ng Keng Hooi said the group's bancassurance strategy is to partner with leading financial institutions to broaden its distribution capabilities across the region.

"We expect the strengthening of our long-term partnership with Public Bank to deliver strong value for AIA's customers and shareholders over the next 20 years," he added.

AIA Malaysia CEO Anusha Thavarajah said AIA and Public Bank have achieved a great deal together in delivering impressive growth and an increase in customer penetration in Malaysia.

"We view the roll-out of AIA Vitality, our science-backed wellness programme that incentivises people to make healthy life choices, as central to our ambitions of helping Malaysians live longer, healthier, better lives, and we look forward to working closely with Public Bank to bring AIA's unique offerings to their customers," she added.

Public Bank managing director and CEO Tan Sri Tay Ah Lek said the extension of the partnership "will see us further deepening our collaboration as we take our bancassurance business to the next level, not only in Malaysia but in the markets where Public Bank has a presence across the Asia-Pacific region".