Brazil’s Caixa kicks off process to attract partners for insurance unit

SAO PAULO, May 10 (Reuters) - Brazilian state-owned lender Caixa Economica Federal sent teasers to insurers on Friday to lure partners for its insurance business, Caixa Seguridade Participacoes, according to documents sent to potential partners.

The bank intends to strike these deals before listing Caixa Seguridade, as part of its plans to raise up to 100 billion reais from the sale of assets the unlisted state-owned lender owns or manages.

Caixa Seguridade is seeking partners for four units: residential insurance, car insurance, premium bonds and the sale of quotas for purchasing pools vehicles, real estate and other products.

Partnerships will last 20 years, starting in February 2021, the documents show.

Caixa intends to have up to three insurers selling car insurance through the bank’s 4,170 branches.

For residential insurance, premium bonds and consortia products, Caixa intends to forge one joint venture. Partners will have 50% of the new company’s common shares and 25% of its economic rights.

Caixa Seguridade says these three new companies will offer products to the bank’s 93 million clients and also for outside consumers.

Caixa is requiring that to qualify for the partnership, Brazilian companies have at least $300 million in shareholders equity and international ones, above $1.5 billion. The partner for the purchasing pool will need to prove a certain number of clients in the activity. (Reporting by Carolina Mandl Editing by Alistair Bell)