Thai SCB, Prudential reach bancassurance deal

(Adds Philippines deal, share price, analyst)

BANGKOK, Jan 10 (Reuters) - Siam Commercial Bank Pcl , Thailand's second largest bank by assets, and Prudential Life Assurance (Thailand), a unit of UK-based Prudential Plc (SES: K6S.SI - news) , have signed a bancassurance partnership deal aimed at the lender's wealthy clients.

An ageing population and a limited welfare system provides opportunities for insurers in Thailand, the eighth largest insurance market in Asia, according to a 2016 Swiss Re (LSE: 0QL6.L - news) report.

"Thailand is one of the largest insurance markets in Southeast Asia with low insurance penetration, a growing and increasingly prosperous population with significant insurance and savings needs," Aman Chowla, chief executive of Prudential (Amsterdam: PD8.AS - news) Thailand said in a statement on Wednesday.

"Bancassurance is an integral part of our multi-distribution strategy to reach Thai customers."

Asia-focused Prudential, Britain's largest insurer by market capitalisation, also said this week it had signed a similar deal with Robinsons Bank in the Philippines.

Prudential's shares hit record highs and were trading up 1.68 percent at 1,940 pence at 1005 GMT, with analysts at JPMorgan (LSE: JPIU.L - news) describing the two bancassurance deals as "a small positive" and has a "neutral" rating on the stock.

The SCB deal, which will initially offer three unit-linked products from Prudential, "perfectly" fits in with the financial and investment needs of its customers, said Salisa Hanpanich, executive vice president of the bank's segment management division.

A unit-linked insurance policy allows holders to invest in qualified instruments, such as mutual funds.

The SCB deal comes less than a year after the bank attempted to sell its life insurance arm to Hong Kong insurer FWD Group.

Life insurance direct premiums in Thailand stood at 533.2 billion baht ($16.10 billion) in 2015, while non-life premiums were at 209.3 billion baht, latest available government data showed.

(Reporting by Wirat Buranakanokthanasan, Writing by Chayut Setboonsarng; additional reporting by Carolyn Cohn in London; Editing by Biju Dwarakanath/Jeremy Gaunt)