SAO PAULO, Aug 29 (Reuters) - The insurance unit of Brazil’s state-owned lender Caixa Economica Federal has agreed to create a new joint venture with France’s CNP Assurances SA to sell life insurance products in the bank’s more than 4,000 branches in the country.
In a securities filing, Caixa said CNP will pay 4.65 billion reais ($1.13 billion) for a 40 percent stake in the joint venture, that has a contract to sell life insurance contracts through 2041. Caixa will own the remaining 60 percent.
The new joint venture ends a previous agreement between CNP and Caixa to sell all kinds of insurance. Caixa may now look for new partners to sell home and auto insurance policies.
The bank said in the filing it expected to complete agreements with the new insurance partners by the end of the year.
$1 = 4.1198 reais Reporting by Tatiana Bautzer; Editing by Richard Chang