Caixa Economica Federal, the Brazilian government owned lender, has selected Morgan Stanley as co-advisor to help it find insurance partners for its venture Caixa Seguridade Participacoes.
Sources familiar with development told Reuters that Morgan Stanley will oversee the process in association with Caixa’s investment banking division.
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Last week, Caixa’s insurance business Caixa Seguridade Participacoes started four processes to choose insurance partners to sell dental, health, assistance and large risk policies.
Earlier this month, Caixa sent invitations to insurance companies to offer other kinds of insurance policies.
The news agency reported that the partnership will be for 20 years. The selected partners will be able to sell insurance policies to Caixa’s 93 million clients through its more than 4,000 branches.
The bancassurance pacts with new partners are expected to become effective from February 2021.
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By GlobalDataThrough the bancassurance deals, the Brazilian bank plans to boost Caixa Seguridade’s revenue before its initial public offering (IPO).
The planned IPO is part of Caixa’s plan to rake in BRL100bn ($25.27bn) from the sale of assets it owns or manages.
Caixa Seguridade Participacoes provides a number of life and non-life insurance policies such as housing, elementary and auto insurance, along with private retirement plans, capitalisation bonds and consortium.
