Chubb and Citigroup have sealed a distribution agreement involving the sale of insurance products in Mexico.
The arrangement takes place through local divisions of each company: Citigroup’s Citibanamex subsidiary and Chubb affiliate Chubb Seguros Mexico. Financial details were not disclosed.
As envisioned, Citibanamex will distribute Chubb property/casualty insurance products through Citibanamex branches and other digital and direct marketing channels. Property coverages for auto, home, individuals and small-to-midsize businesses, accident and health products, and commercial P/C coverages for larger businesses are included in the distribution deal.
Additionally, Citibanamex and Chubb signed a separate agreement allowing for Chubb to market surety products to Citibanamex commercial customers. The consumer and small business products will be distributed under Chubb’s Mexican brand, ABA Productos.
Plans call for starting distribution by early 2019.
Chubb gains a wide reach through Citibanamex’s distribution network. As one of Mexico’s major financial institutions, the brand is well recognized and has a retail banking network of about 1,500 branches and about 9,0000 automated teller machines. What’s more, Citi is investing $1 billion to make its Mexican operations into what it terms as “the leading digital and data-driven ‘Bank of the Future’ by 2010,” according to the deal announcement.
Marcos Gunn, division president, Northern Latin America and chief operating officer of Latin America for Chubb, said the deal gives the insurer “a bancassurance partner that is a leader in its market, has excellent brand recognition, deep relationships, and a well-deserved reputation for high-quality products and services.”
Source: Chubb, Citibanamex