Generali’s Portuguese entity Tranquilidade has entered into a long-term agreement with CTT Group, the Portuguese postal services group, for the distribution of Life and P&C policies, with the partnership being reinforced by the acquisition of a stake in Banco CTT by Generali, through a €25 million reserved capital increase.
Generali Group will become a shareholder of the institution with an approximate 8.71% stake.
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.
The firm added that with this new agreement, it will reach new clients, particularly in the Life segment, while considerably increasing its overall premiums.
Pedro Carvalho, CEO of Tranquilidade Generali Group, commented, “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.”
Jaime Anchústegui, CEO of International, Generali Group, added, “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.”
At the end of 2021, Tranquilidade’s premiums stood at €1.14bn, of which €1.06bn in P&C, and €80 million in Life.
Arcano Partners acted as the exclusive financial advisor for Tranquilidade and Generali Group, with Morais Leitão as the legal advisor.
Meanwhile, Generali recently announced it has partnered with Crawford & Company to provide specialist cyber incident response and loss adjusting services globally.