CNP Assurances announces the conclusion of a framework agreement, which will result in the signing of an exclusive twenty-year distribution agreement with Caixa Seguridade to use the Caixa Econômica Federal banking network in Brazil to distribute the consórcio  product, in particular for real property and automobile. This new agreement is an addition to that signed in August 2018 (and amended in September 2019) on personal risk, consumer loan insurance and pension products (vida, prestamista, previdência).

The revenue of Grupo Caixa Seguridade for this business segment under local standards was R$546m in 2019 (compared with R$481m in 2018).

The new distribution agreement will be operated through a company formed for this purpose which will have shared management and governance between CNP Assurances and Caixa Seguridade. The former will hold 50.01% of the common shares with voting rights; the latter 49.99% of the common shares with voting rights and 100% of the preferred shares without voting rights, which will represent economic rights of 25% and 75% for each party, respectively.

The agreement stipulates that CNP Assurances is to pay a fixed sum of R$250m (equivalent to €39.3m on 13 August 2020) on completion of the deal.

Completion of the deal still depends on various conditions being met first, including the obtaining of necessary approvals from the relevant regulatory authorities for banking and competition. Subject to these approvals being obtained, it is expected the deal will be finalised no later than 4 January 2021.

CNP Assurances is delighted to conclude this new agreement, which will contribute to its long-term expansion in the Brazilian insurance market,” said Antoine Lissowski, CNP Assurances’ Chief Executive Officer.


*[1]This product, which to some extent uses the principles of a savings plan and a tontine, allows participants in a group to obtain financing at a lower rate than the market rate by lending each other money for a given period of time.