CNP Assurances and Embracon complete their combination to create a leading consórcio player in Brazil

CNP Assurances Group and Embracon announce the completion of their strategic combination in the consórcio¹ market, creating the second-largest independent² group in the sector in Brazil.

A long-established insurer in Brazil, CNP Assurances is strengthening its presence in the consórcio market through its combination with Embracon, a leading player in the sector. Together, the two partners are establishing a leading platform for the distribution, management and sale of credit on the domestic market.

The transaction, resulting from the combination of their consórcio businesses in Brazil, takes the form of CNP Consórcio being contributed to Embracon, followed by an acquisition of shares by CNP Assurances. Following these transactions, Embracon is now 40% owned by CNP Assurances and 60% owned by its founders.

This agreement is fully aligned with the execution of CNP Assurances’ new Lead for Impact strategic plan. This new partnership strengthens the Group’s presence in Brazil and accelerates the roll-out of its open model by diversifying its distribution channels (physical, digital and multi-partner).

The acquisition will be financed by CNP Assurances from its own funds. The impact on the Group SCR coverage ratio is approximately -2 points.

CNP Assurances, Brazil’s third-largest insurer, has comprehensive experience in consórcio. Building on strong partnerships in this segment and robust operational capabilities, the Group is accelerating its development in long-term financial solutions supporting financial inclusion.

Operating in Brazil for 38 years, Embracon relies on major strategic partnerships for white-label distribution. The company has a strong distribution network comprising 149 branches and franchises in over 90 towns and cities, more than 2,500 sales advisers and a comprehensive digital offering.

The transaction has been approved by the relevant authorities.

Marie-Aude Thépaut, Chief Executive Officer of CNP Assurances
“The signing of this new agreement marks an important step in the execution of our Lead for Impact strategic plan. By partnering with Embracon, we are strengthening our presence in a high-potential market and creating a multi-channel player that combines B2B operations with a direct distribution platform.
This transaction illustrates our determination to accelerate the development of our open model in Latin America through new partnerships. It reflects our ambition to intensify our commercial momentum and achieve greater operational excellence for the benefit of our partners and customers,  while further strengthening our commitment to more inclusive protection, in line with our corporate purpose.”

1  Consórcio is an alternative to financing that enables consumers with limited access to borrowing to purchase valuable assets, mainly homes and cars. It is a socially oriented savings solution in which groups of individuals make monthly contributions to a common fund (the Consórcio) to enable a future purchase. Over the life cycle of the Consórcio, all members will be able to acquire the asset for which the group was originally established. The Brazilian Consórcio market is growing steadily: +23% between 2020 and 2024, reaching BRL 380 billion (approximately €60 billion) and more than 10 million active participants.2  Excluding the Caixa Consórcio subsidiary, the combination ranks second among independent players, with a 5.8% market share. Taking into account all the activities of CNP Consórcio, Embracon and Caixa Consórcio, the Group ranks first in terms of sales volumes in the consórcio segment, with a 9.8% market share, and third in terms of assets under management.

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