MAPFRE and BANCO DO BRASIL sign a non-binding MoU to update their strategic alliance
MAPFRE and BANCO DO BRASIL have signed a non-binding memorandum of understanding to update the terms of their strategic alliance in the insurance business, which gave rise to BB MAPFRE, incorporated in 2011, and which over the course of the last six and a half years has consolidated itself as one of the leading insurance groups in Brazil, with a market share of 16.6 percent and premiums of more than 4 billion euros in the last financial year.
The redefinition of these agreements would result in an increase in MAPFRE’s shareholding in its businesses in Brazil, which would allow it to progress toward a simpler and more efficient governance structure and reduce internal costs, with a significant improvement in productivity and business profitability.
According to the terms of the memorandum, MAPFRE would become the owner of 100 percent (currently 50 percent) of the sum of the business generated by the agency network and the automobile and large risks business in the BB bank channel. The same current shareholder configuration for life and agriculture insurance would be maintained and BB’s bank channel homeowners insurance, which BB MAPFRE would continue to develop, would be incorporated into this same structure, with MAPFRE’s shareholding being 25 percent.
MAPFRE would maintain exclusivity in the Banco do Brasil bank channel for all the businesses falling within the scope of the alliance, both those sold directly and those distributed through BB MAPFRE.
The definitive terms of this operation will be communicated via the Spanish Securities and Exchange Commission once the negotiation process between both groups has been concluded and the definitive agreements have been signed.