Generali strikes long-term distribution deal with Portugal's post office
November 07, 2022 at 02:59 am EST
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MILAN (Reuters) - Italy's biggest insurer Assicurazioni Generali said its Portuguese arm had agreed a long-term distribution deal with CTT Group, the country's postal services group, while also taking an 8.7% stake in CTT'S banking unit.
Generali said in a statement on Monday its Portuguese unit Tranquilidade would invest in Banco CTT by subscribing to a 25 million euro ($24.82 million) reserved capital increase.
Following the accord, Tranquilidade's life and non-life insurance products will be distributed by CTT and by Banco CTT, with a five-year exclusivity period that can be renewed.
Tranquilidade's premiums stood at 1.1 billion euros at the end of 2021, virtually all in its non-life business.
"Through this agreement ... Tranquilidade will reach new clients, particularly in the life segment, while considerably increasing its overall premiums," Generali said in a statement.
Launched in 2016, Banco CTT serves 600,000 customers both online and through a network of more than 200 outlets. It manages 2 billion euros in clients' deposits.
($1 = 1.0073 euros)
(Reporting by Valentina Za, Editing by Louise Heavens)
CTT-Correios de Portugal, S.A. is the Portuguese leader in postal services provision. Net sales break down by activity as follows:
- mail collection and delivery (50.4%): letters, postcards, ads, advertising documents, newspapers, etc.;
- express and parcels transportation and delivery services (40.2%): activity ensured in Portugal, Spain and Mozambique;
- sale of financial products and services (7.2%): public debt certificates, postal saving products, insurance and postal money orders;
- banking and payment services (2.2%): savings accounts, consumer credit (auto loans and credit cards), mortgage loans, off-balance sheet savings. The group also provides payment solutions (Payshop) allowing paying for purchases through the Internet and via certified agents (kiosks, tobacconists, supermarkets, etc.).
Portugal accounts for 69% of net sales.
CTT-CORREIOS DE PORTUGAL, S.A. 
