French insurance firm CNP Assurances SA has reportedly reached an agreement with the insurance division of state-owned Brazilian bank Caixa Economica Federal to sell life insurance across the lender’s branches in the country.
According to a statement on Caixa’s website, the agreement involves the creation of a joint company that may sell life insurance products until February 2041. Caixa’s insurance arm, Caixa Seguridade, will own 60% of the joint venture, while CNP will acquire a 40% stake for 4.65 billion reais (about £869.5 million).
Reuters reported that the deal also ends a previous agreement between both firms, where Caixa only sold CNP’s insurance products. The bank can now partner with other firms in the residential, auto, property and casualty insurance sectors.
A press release on CNP’s website said it earlier partnered with Caixa in 2001 through the establishment of Caixa Seguros Holding (CSH). The business saw average annual growth of 18% from 2008-2017.
CNP has also reached a separate agreement with Caixa Seguridade and insurance brokerage group Wiz regarding the terms of future cooperation. This includes operational back office services provided by Wiz to CSH and to the new insurance joint venture.
