SAO PAULO (Reuters) - Brazilian state lender Caixa Economica Federal has picked investment bank Morgan Stanley as co-advisor to help it find insurance partners, a source with knowledge of the matter said.
Morgan Stanley will manage the process alongside Caixa’s investment banking unit, the source said. Caixa Seguridade Participacoes, the insurance unit of the state lender, on Friday launched four processes to select insurance partners to sell health, dental, assistance and large risk policies.
Caixa had already sent invitations to insurers to offer other kinds of policies on May 10.
The insurance partners will have the right to underwrite policies for 20 years and sell them to Caixa’s 93 million clients through its more than 4,000 branches.
The bank intends the deals to increase Caixa Seguridade’s revenue before its initial public offering. The planned IPO is part of Caixa’s plan to raise up to 100 billion reais from the sale of assets it owns or manages.
Caixa and Morgan Stanley did not immediately respond to requests for comment.
Reporting by Tatiana Bautzer; Editing by Alexander Smith