Citibanamex, a subsidiary of Citigroup Inc., and Chubb Seguros México, an affiliate of Chubb Ltd., announced a definitive long-term agreement where Chubb will provide a range of non-life insurance products to Citibanamex’s consumer bank clients in Mexico, subject to regulatory approvals.
Under the terms of the agreement, Citibanamex will distribute Chubb non-life insurance products through Citibanamex branches and a variety of digital and direct marketing channels. The agreement encompasses property and casualty (P/C) coverages for auto, home, individuals and small-to-medium enterprises (SMEs), accident and health (A&H) insurance products, and commercial P/C coverages for larger businesses.
Citibanamex and Chubb have also entered into a separate agreement covering surety, where Chubb will market surety products to Citibanamex commercial customers. The consumer and small business products will be distributed under Chubb’s Mexican brand, ABA Productos.
Citibanamex and Chubb expect to commence distribution in early 2019.
The agreement is part of Citi’s emphasis on expanding access to best-in-class products and offerings, complementing the life insurance products offered by Citibanamex Seguros. Citibanamex has a Mexican retail banking network of approximately 1,500 branches and approximately 9,000 automated teller machines.
Citi said it is investing $1 billion to make its Mexican operations the leading digital and data-driven “Bank of the Future” by 2020.
With over 60 offices across the country, Chubb Seguros México is the second-largest P/C and auto insurance company in Mexico.
“In Citibanamex, Chubb gains a bancassurance partner that is a leader in its market, has excellent brand recognition, deep customer relationships, and a well-deserved reputation for high-quality products and services,” said Marcos Gunn, division president, Northern Latin America and chief operating officer of Latin America for Chubb.
“This exclusive long-term distribution agreement will provide an excellent opportunity for Chubb to add to its already substantial operations in Mexico,” added Gunn.
“This agreement demonstrates Citibanamex’s strong commitment to providing our clients with access to top quality products and services,” said Ernesto Torres Cantú, CEO of Citibanamex. “Chubb is an outstanding partner and we know that our clients will benefit from Chubb’s expertise, market-leading position and innovative products. The agreement is another example of the enhancements we continue to make across our Citibanamex franchise to better serve clients.”
Source: Chubb and Citibanamex
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