Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Global Bancassurance:
Strategies of the World's Top 125
Retail Banking Groups
Report Prospectus

July 2013

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Prospectus contents

Page

What is the research? 3

Which banking groups are covered? 4
Which insurance products are covered? 5
How do country-specific retail banking units covered break down by region and group? 6
What is the report structure? 7
Output example: banking group involvement in bancassurance 8
Output example: unweighted and weighted provider share of partnerships 9
What are the key features of the research? 10
How can the research be used? 11
How can the Partner BASE™ be used? 12
Who can use the research? 13
What are some of the key findings? 14-16
What is the cost and format? 17
Country-specific reports about bancassurance 18
How can the research be purchased? 19

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

What is the research?

Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups is a report and
PartnerBASE™ dataset that provides a detailed overview of the bancassurance strategies of the
leading 125 consumer banking groups worldwide. In total, the research investigates 748 country-
specific retail banking units since most of these groups are active in retail banking in multiple
territories; for example, the study analyses the bancassurance operations of Citigroup in a total of
31 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 125 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 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.

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Which banking groups are covered?

ABN AMRO BNP Paribas Erste Group Millennium BCP Shanghai Pudong Dev. Bank
AEON Financial Services Bradesco Fifth Third Bancorp Mitsubishi UFJ Financial Group Shinhan Financial Group
Agricultural Bank of China Caixa Econômica Federal Fukuoka Financial Group Mizuho Financial Group Shizuoka Bank Group
AIB Group Caixa Geral de Depósitos GE Capital Monte dei Paschi de Siena Shoko Chukin Bank
American Express Capital One Groupe BPCE National Australia Bank Group SNS REAAL
ANZ CatalunyaCaixa Hana Financial Group National Bank of Canada Société Générale
Banco do Brasil Chiba Bank Handelsbanken National Bank of Greece Standard Bank Group
Banco Espírito Santo China CITIC Bank Hokuhoku Financial Group Nationwide Building Society Standard Chartered
Banco Financiero y de Ahorros China Construction Bank HSBC NongHyup Bank State Bank of India
Banco Popolare China Everbright Bank Hua Xia Bank Nordea Group Sumitomo Mitsui Financial Group
Banco Popular China Guangfa Bank ICBC Nykredit SunTrust Banks
Banco Sabadell China Merchants Bank Industrial Bank OCBC Swedbank
Bank of America China Minsheng Bank Industrial Bank of Korea OP-Pohjola Group Taiwan Financial Holdings
Bank of Beijing CIBC ING Group PNC Financial Services Group TD Bank Group
Bank of China Citigroup Intesa Sanpaolo Rabobank Turkey İş Bankası
Bank of Communications Commerzbank Itaú Unibanco Holding Raiffeisen Bankengruppe U.S. Bancorp
Bank of Ireland Commonwealth Bank Group Joyo Bank Raiffeisen Switzerland UBI Banca
Bank of Shanghai Crédit Agricole KB Financial Group RBC UBS
Bank of Yokohama Crédit Mutuel KBC Group RBS Group UniCredit
Barclays Credit Suisse Group La Caixa Regions Financial Corporation UOB Group
Bayerische Landesbank Danske Bank Landesbank Baden-Württemberg Resona Holdings VTB Group
BB&T DBS Landesbank Berlin Santander Wells Fargo
BBVA Desjardins Group Lloyds Banking Group Sberbank Westpac Group
Belfius Deutsche Bank Macquarie Group Scotiabank Woori Financial Group
BMO Financial Group DNB Group Maybank SEB Group Zürcher Kantonalbank

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Which insurance products are covered?

For each of the 748 country-specific banking units across the 125 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

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

How do country-specific retail banking units

covered break down by region and group?

Africa and
Australasia, Middle East, 15
20 Citigroup, 36
North Santander, 32
America, 51
HSBC, 31
Latin America, 59 BNP Paribas, 28
American Express, 27

Crédit Agricole, 23
Raiffeisen
Bankengruppe, 23
Europe, 421 Société Générale, 23
Asia-Pacific, GE Capital, 19
182 Others, 487
UniCredit, 19

Source: Finaccord PartnerBASE for the World's Top 125 Retail Banking Groups

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

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 125 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; divestments (for regulatory or
strategic motives); strategic partnerships with insurance groups; insurance products offered.

3. Group Strategy Analysis: for each of the 125 banking groups in turn, this chapter provides a
written overview of their retail operations and a summary of their bancassurance strategy, followed
by a table illustrating their involvement in bancassurance (see slide 9 for an example) and a pair of
pie charts depicting unweighted and weighted provider share of partnerships for insurance products
(see slide 10 for an example).

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Output example: banking group

involvement in bancassurance
Across 19 retail banking units in 16 countries serving around 40 million customers, UniCredit
generated premiums of USD 4.79 billion from its captive and joint venture underwriters in 2012
Group overview Unweighted product provision rates

Total assets (USD billion) 1,191.5 (December 2012) Accident and health Creditor
Customers worldwide (million) 40.0 (December 2012)
Tier 1 capital ratio 11.4% (December 2012) Accident 21.1% Creditor - consumer finance 82.4%
Countries researched 16 Health / hospital cash 0.0% Creditor - credit cards 50.0%
Banking operations researched 19 Medical expenses 10.5% Creditor - mortgages 100.0%
Captive underwriter(s) Yes
JV underwriter(s) Yes Motor and household Other personal non-life
Premiums (captive / JV) (USD billion) 4.79 (2012)
Household 57.9% Card protection 26.3%
Personal motor 36.8% Travel 15.8%

Investment / retirement Commercial non-life

Investment-related life 47.4% Professional indemnity 5.3%

Retirement savings 36.8% Trade credit 5.3%
Other commercial non-life 42.1%
Protection-related life

Critical illness 0.0%

Income protection 5.3%
Risk life 36.8%

Source: Finaccord PartnerBASE for the World's Top 125 Retail Banking Groups

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Output example: unweighted and

weighted provider share of partnerships
Across 13 countries in which it is active, Standard Chartered works with a large number of
insurance providers of which MSIG and Prudential can be considered strategic partners
Hyundai Group,
Prudential, 21.8% 14.6%
other, 27.9%
other, 30.6%

Prudential,
13.8%

MSIG, 16.3%
ACE, 6.2%
Bajaj, 3.4%
MSIG, 9.9%
MetLife, 4.1%
Allianz, 6.7%
Cigna, 4.1%
Shinhan Financial
Sundaram Finance, 4.1% Allianz, 11.6% Sundaram Group, 7.1%
RSA, 4.1%
Finance, 6.9% RSA, 6.9%

Unweighted provider share of partnerships, % Weighted provider share of partnerships, %

Source: Finaccord PartnerBASE for the World's Top 125 Retail Banking Groups

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

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 748 consumer
banking units owned by the world's top 125 retail banking groups;

• 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 the
world's leading bancassurers 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 over 4,900 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.
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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

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 the world's top 125 retail banking groups;

• 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 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, global 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.

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

How can the PartnerBASE™ be used?

Sort by region Select banking brand Filter by product Identify partners

HOUSEHOLD INSURANCE
Banking group Region Country Banking brand Product offered? Operating model Partner(s)

HSBC Asia-Pacific China HSBC Yes External underwriter Ping An

HSBC Asia-Pacific Hong Kong Hang Seng Bank Yes External underwriter QBE General Insurance
HSBC Asia-Pacific Hong Kong HSBC Yes External underwriter AXA
HSBC Asia-Pacific Hong Kong Prime Credit Yes External underwriter MSIG
HSBC Asia-Pacific India HSBC Yes External underwriter Tata AIG
HSBC Asia-Pacific Indonesia Bank Ekonomi Raharja Yes External underwriter Pan Pacific
HSBC Asia-Pacific Indonesia HSBC Yes External underwriter Tokio Marine
HSBC Asia-Pacific Malaysia HSBC Yes Captive underwriter HSBC Amanah Takaful
HSBC Asia-Pacific Philippines HSBC Yes External underwriter AIG
HSBC Asia-Pacific Singapore HSBC Yes External underwriter AXA
HSBC Asia-Pacific South Korea HSBC No
HSBC Asia-Pacific Taiwan HSBC Yes External underwriter Anda Insurance
HSBC Asia-Pacific Vietnam HSBC Yes External underwriter Baoviet

Filter by group Choose country See operating model

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

Who can use the research?

1. Banking groups: approaches to bancassurance vary enormously across the 125 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 global peer group;

2. Insurance underwriters: this research provides a comprehensive guide to the bancassurance

strategies, partnerships and individual product initiatives of the world's top 125 retail banking
groups, allowing you to formulate strategy at both international and country-specific levels;

3. Insurance brokers: over 250 individual product initiatives – more than 5% of the total observed
- are organised through brokerage operations (including captive and joint venture brokers) as
opposed to with underwriters, and 70 brokers hold at least one distribution relationship;

4. Management consultancies: if you are helping an insurance or banking group with its
bancassurance strategy, then this research will summarise the global landscape, saving time
and effort on researching the subject yourself;

5. 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.
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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

What are some of the key findings?

1) 82 out of the world's top 125 retail banking groups have at least one
captive or joint venture insurance underwriter of which 17 own both types

None, 43 Captive
underwriter(s), 52

Captive and joint

venture Joint venture
underwriter(s), 17 underwriter(s), 13

Source: Finaccord PartnerBASE for the World's Top 125 Retail Banking Groups

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

What are some of the key findings? (cont.)

2) Across the individual country operations of the 125 groups, mortgage-related creditor insurance
is the policy type most commonly available and trade credit insurance the least widespread

Accident 40.6%
Accident and health Health / hospital cash 20.9%
Medical expenses 27.1%

Personal non-life Personal motor 45.5%

Household 60.3%

Critical illness 24.3%

Protection-related life Income protection 21.1%
Risk life 56.3%

Investment-related life Investment-related life 49.7%

Retirement savings 52.8%

Creditor - consumer finance 57.2%

Creditor Creditor - credit cards 39.2%
Creditor - mortgages 64.4%

Niche personal Card protection 16.7%

Travel 29.0%

Professional indemnity 13.2%

Commercial Trade credit 6.3%
Commercial (other) 31.8%

0% 20% 40% 60% 80% 100%

% provision across country operations researched
Source: Finaccord PartnerBASE for the World's Top 125 Retail Banking Groups

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

What are some of the key findings? (cont.)

3) Key findings from the executive summary include:

• 52 of the world's top 125 retail banking groups are classifiable as having a strategic alliance with
an external insurance group, 15 of which have more than one strategic partner;

•Aviva (with six) holds the most strategic relationships among the world's top 125 retail banking
groups, followed by Allianz, Prudential and Zurich with four each;

• in total, 45 insurance groups have at least one such strategic alliance;

• by value of insurance underwritten via captive or joint venture entities, Crédit Agricole is the
world's largest bancassurer although by number of countries in which captive or joint venture
underwriters are present, BNP Paribas is the most internationally diversified;

• for either regulatory or strategic reasons, several banking groups are divesting their insurance
interests – naturally, this throws up opportunities for insurers seeking to increase their exposure to
the bancassurance distribution channel.

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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

What is the cost and format?

Global Bancasssurance: Strategies of the World's Top 125 Retail Banking Groups is available as a
standard PDF document. The PartnerBASE™ dataset that accompanies it at no further charge is in
Microsoft Excel format. Costs for this research set and other related titles available at the time of
publication are as follows:

REPORT PRICE *
Global Bancassurance: Strategies of The World's Top 125 Retail Banking Groups GBP 2,995
Creditor Insurance in Latin America GBP 1,795
Creditor Insurance in Northern, Central and Eastern Europe GBP 2,495
Creditor Insurance in Southern and Western Europe GBP 2,495
Life Bancassurance in the Asia-Pacific Region: Investment-Related Life Insurance and Retirement Savings GBP 1,995
Life Bancassurance in the Asia-Pacific Region: Protection-Related Life Insurance GBP 1,995
Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings GBP 2,995
Life Bancassurance in Europe: Protection-Related Life Insurance GBP 2,995
Life Bancassurance in Latin America: Protection-Related Life Insurance GBP 1,795
Non-Life Bancassurance in Europe: Accident and Health Insurance GBP 2,995
Non-Life Bancassurance in Europe: Motor and Household Insurance GBP 2,995

* 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.
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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

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 Romania GBP 795
Belgium GBP 795 Indonesia GBP 995 Russia GBP 795
Brazil GBP 995 Ireland GBP 795 South Korea GBP 995
Chile GBP 995 Italy GBP 795 Spain GBP 795
China GBP 995 Japan GBP 995 Sweden GBP 795
Czech Republic GBP 795 Mexico GBP 995 Switzerland GBP 795
Denmark GBP 795 Netherlands GBP 795 Thailand GBP 995
Finland GBP 795 Norway GBP 795 Turkey GBP 795
France GBP 795 Poland GBP 795 UK GBP 795
Germany GBP 795 Portugal GBP 795 Vietnam GBP 995
Hong Kong 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.
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 Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups

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.

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