Citibanamex inks deal to distribute Chubb non-life products

Mexican top-tier financial institution Citibanamex and Chubb Seguros México announced a long-term agreement whereby Chubb will offer a broad range of non-life insurance products to Citibanamex's consumer bank clients in Mexico.

Citibanamex and Chubb said on Thursday they expect to commence the distribution scheme in early 2019 after securing regulatory approval.

Citibanamex will distribute Chubb non-life insurance products through its bank branches and a variety of digital and direct marketing channels.

The agreement encompasses P&C coverage for auto, home, individuals and SMEs, accident and health insurance products, and P&C coverage for larger businesses.

The P&C policies from Chubb will complement the life insurance products offered by Citibanamex Seguros.

Citibanamex and Chubb have also entered into a separate agreement covering surety, whereby 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.

"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, Chubb's division president for northern Latin America and COO of Latin America.

According to data from the country's sector regulator (CNSF), Citibanamex reported 26.77bn pesos (US$1.35bn) in premiums last year with 105bn pesos in assets at the end of 2017.

In accessing Citibanamex's massive customer base, Chubb has much to gain in the local market, although it already is the second-largest P&C and auto insurance company in Mexico, with more than 60 offices across the country.

CNSF data for 2017 shows Chubb reported 340mn pesos in direct written premiums and had 1.62bn pesos in assets at the end of the year.

Citibanamex is one of Mexico's three largest banks and Chubb is the world's biggest publicly traded P&C insurance company and the largest commercial insurer in the US.