Citigroup to seek bids for Asia general insurance distribution deal -source
SINGAPORE, March 28 Citigroup Inc will seek bids from global insurers keen to sell general insurance products across the bank's Asia-Pacific markets, underscoring moves by banks to monetise their network of branches and customer base as demand for insurance grows in the region, a person with knowledge of the matter told Reuters.
The multi-year, bancassurance deal for products such as motor, property and travel insurance, will be one of the largest of its kind in the region, and give insurers access to 15 million customers of Citibank in 12 markets including Singapore, Hong Kong, China, India and Australia.
Citi will kick off the process for the 15-year deal in a few days, said the person who declined to be identified as the information was not public. The transaction could be worth at least $500 million, the person said.
The exact value of the deal will depend on various issues including how bidders structure upfront payments and calculate net present value of future commissions and deferred payments, the person said.
A spokesman at Citi declined comment. (Reporting by Anshuman Daga)