CNP Assurances announces the finalisation of its new twenty-year partnership with Caixa Econômica Federal (CEF) for the exclusive distribution in CEF’s network of consórcio1  product.

CNP Assurances announces that the closing transactions set out in the agreement signed on 13 August 2020 with Caixa Econômica Federal and Caixa Seguridade have been finalised , in particular the payment of R$250m to Caixa Econômica Federal. 

A new joint venture has been created. It will be integrated into CNP Assurances Group by the equity method. Voting rights will be split 50.01% for CNP Assurances and 49.99% for Caixa Seguridade, and economic rights 25% for CNP Assurances and 75% for Caixa Seguridade.

The transaction is still under analysis by the Brazilian Central Bank and, for that reason, start of operations by the new joint venture will occur once approved by such authority. 

(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.