Generali agrees long-term insurance distribution deal with Portuguese CTT Group

Written by Michael Griffiths

07/11/2022

Generali has reached an agreement with Portuguese postal services group, CTT Group, for the distribution of life and P&C policies through the CTT Group network.

The partnership is to be reinforced by the acquisition of a stake in Banco CTT by Generali’s Portuguese entity Tranquilidade, through a €25m reserved capital increase.

Generali will become a shareholder of the institution with an approximate 8.71% stake.

Through the partnership, Tranquilidade’s insurance products will be distributed by CTT and by Banco CTT, based on a long-term distribution agreement, with renewable five-year exclusivity periods.

Generali also suggested that the agreement with CTT Group and Banco CTT will allow Tranquilidade to reach new clients, particularly in the life segment, while considerably increasing its overall premiums. At the end of 2021, Tranquilidade’s premiums stood at €1.14bn, of which €1.06bn in P&C, and €80m in life.

CEO of International at Generali Group, Jaime Anchústegui, commented: “This agreement confirms Generali’s strategy to consolidate its leadership position in the Portuguese insurance market and is fully in line with our ‘Lifetime Partner 24: Driving Growth’ plan.

“This partnership with CTT Group will allow us to further increase value for customers across the country thanks to our expanded distribution capacity.”

Tranquilidade CEO, Pedro Carvalho, added: “The partnership with CTT Group is an important strategic step for Tranquilidade and for the growth of Generali Group in Portugal. It will allow us to significantly strengthen our size within the next three years and to change the current paradigm of the Portuguese insurance market by introducing advanced innovative solutions.

“We are very pleased to have CTT Group and Banco CTT as long-term partners, and as a result, contribute to their expansion, leveraging the synergies established in the agreement and benefiting from CTT Group’s strong presence across the country, with its broad physical retail network and advanced digital platform.”

The operation will be completed after approval by the relevant regulators, Generali confirmed.

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