Exclusive: France's CNP and Brazil's Caixa close to reaching $1.7 billion insurance deal - sources

By Carolina Mandl SAO PAULO (Reuters) - France's CNP Assurances SA is close to reaching a deal worth 7 billion reais ($1.7 billion) with Brazil's state-owned lender Caixa Economica Federal to sell insurance in the bank's more than 3,000 branches, two sources with knowledge of the matter said. The companies will create a joint venture with Caixa insurance unit Caixa Seguridade holding a 60% stake and CNP owning the rest.

Reuters September 20, 2019 00:06:27 IST
Exclusive: France's CNP and Brazil's Caixa close to reaching $1.7 billion insurance deal - sources

Exclusive Frances CNP and Brazils Caixa close to reaching 17 billion insurance deal  sources

By Carolina Mandl

SAO PAULO (Reuters) - France's CNP Assurances SA is close to reaching a deal worth 7 billion reais ($1.7 billion) with Brazil's state-owned lender Caixa Economica Federal to sell insurance in the bank's more than 3,000 branches, two sources with knowledge of the matter said.

The companies will create a joint venture with Caixa insurance unit Caixa Seguridade holding a 60% stake and CNP owning the rest.

The deal involves life, pension plans and consumer credit life insurance to be sold through 2046, one of the sources added.

The agreement is likely to be announced in the coming hours.

Caixa and CNP Assurances did not immediately respond to requests for comment.

One year ago, both financial institutions had agreed to create a similar joint-venture, but CNP would pay 4.65 billion reais for a contract to sell life insurance products through 2041. This deal has been revised under new terms, the sources said.

The new joint venture will start to operate in 2021, when the current agreement will expire.

Morgan Stanley is advising Caixa to forge partnerships for its insurance units, including this renegotiation with CNP. JP Morgan Chase is advising CNP Assurances.

($1 = 4.1311 reais)

(Reporting by Carolina Mandl; Editing by Lisa Shumaker)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.