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BRIEF-CNP Assurances in non binding MOU with Brazil's Caixa Seguridade
September 29, 2017 / 5:51 AM / 20 days ago

BRIEF-CNP Assurances in non binding MOU with Brazil's Caixa Seguridade

Sept 29 (Reuters) - CNP Assurances statement says:

* CNP Assurances announces the conclusion of a non-binding Memorandum of Understanding (MOU) with Caixa Seguridade, establishing the conditions for a new exclusive distribution agreement in Brazil as of 1 January 2018.

* The conclusion of this new agreement depends on future negotiations and its approval in particular by the Board of Directors of CNP Assurances

* The new agreement would enable CNP Assurances, subject to the payment of a price, to distribute exclusively in Brazil in the Caixa Econômica Federal network until 13 February 2041, on a new scope.

* The new scope of exclusivity would only cover life and consumer credit life insurance lines and private pension plans (vida, prestamista, previdência).

* The new distribution agreement will be operated through a new corporate structure to be created by CNP Assurances and Caixa Seguridade, in which the economic rights of CNP Assurances would be reduced compared to the current situation.

* CNP Assurances reiterates objective of delivering average annual organic EBIT growth of at least 5% over the 2017-2018 period compared to 2016.

* CNP Assurances says aims to achieve organic growth of EBIT significantly above 5% in 2017 compared to 2016.

* Given the prospect of this new agreement and the ongoing negotiations, CNP Assurances is not in a position, at this stage, to set an objective of EBIT growth in 2018.

Source text for Eikon: Further company coverage: (Reporting By Dominique Vidalon)

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