CNP Assurances announces the finalisation of its new exclusive long-term distribution agreement, through to 13 February 2046, with the Caixa Econômica Federal (CEF) network – Brazil’s public bank and one of the top five banks in Latin America.
CNP Assurances announces that the closing operations set out in the agreement signed with Caixa Econômica Federal and Caixa Seguridade on 29 August 2018 (amended on 19 September 2019), concerning their new exclusive long-term distribution agreement for personal risk insurance, consumer loan insurance and retirement products (vida, prestamista, previdência), were finalised today.
CNP Assurances has paid an initial amount of R$7.0 billion under the agreement. A performance incentive mechanism covering the first five years allows for additional payments, capped at R$0.8 billion (Group share) in value terms at 31 December 2020. The impact of the operation has been fully integrated in the Group’s SCR coverage ratio since 30 September 2019.
A new insurance joint venture has been created. This entity will be fully consolidated by the CNP Assurances Group, which will hold 51% of voting rights and 40% of economic rights, while Caixa Seguridade will hold 49% of voting rights and 60% of economic rights. Caixa Seguros Holding (CSH) has transferred the insurance portfolios relating to the products covered by the agreement to this new jointly owned insurance company.
For the new partnership signed by CNP Assurances and Caixa Seguridade on 13 August 2020 for the distribution of consorcios products in the CEF network, the parties have agreed to postpone the deadline for finalising this partnership, initially scheduled for 4 January 2021, to 30 March 2021.
Antoine Lissowski, Chief Executive Officer of CNP Assurances said: “CNP Assurances is delighted to have closed this new agreement, which strengthens the Group’s activity in the Caixa Economica Federal (CEF) network in Brazil, including exclusive access to its 78 million customers, over the very long term and for a new scope. It draws on the success of the partnership between CNP Assurances and CEF since 2001 through their joint subsidiary, Caixa Seguros Holding (CSH), and was the result of outstanding work by its teams, led by Laurent Jumelle for the past three years.”