Japanese insurer interested in partnership with Brazil's Caixa

Wednesday, August 30, 2017

Japanese insurer Tokio Marine is reportedly interested forming a partnership with Brazilian state run bank Caixa Economica Federal to offer insurance products. Caixa, which performs insurance operations through its unit Caixa Seguridade, announced earlier this month that it will terminate its partnership with French group CNP Assurance in February 2021.

Tokio Marine currently offers certain housing insurance products to Caixa's clients, but it seeks to increase the existing partnership, according to O Estado de S. Paulo newspaper.

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Caixa rejected a proposal by CNP to renew the existing partnership, and the Brazilian bank will seek new partnerships and business models when the existing contract expires. CNP has operated in Brazil since 2001 through the Caixa partnership, taking advantage of the bank's huge branch network.

The state run bank wanted to renew the partnership in each insurance segment separately, and is expected to hold an auction for the mortgage insurance business. Caixa is a powerhouse in Brazil's real estate segment, holding a 70% share of the mortgage insurance market. By law, all home loans are required to be insured.