Citibanamex and Chubb Announce Exclusive Distribution Agreement
Citibanamex, a subsidiary of Citigroup, and Chubb Seguros México, an affiliate of Chubb Limited, announced a definitive long-term agreement whereby Chubb will offer a broad range of non-life insurance products to Citibanamex’s consumer bank clients in Mexico, subject to regulatory approvals.
Under the terms of the agreement, Citibanamex will distribute Chubb non-life insurance products through Citibanamex branches and a variety of digital and direct marketing channels. The agreement encompasses property and casualty (P&C) coverages for auto, home, individuals and small-to-medium enterprises (SMEs), accident and health (A&H) insurance products, and commercial P&C coverages for larger businesses. Citibanamex and Chubb have also entered into a separate agreement covering surety, whereby Chubb will market surety products to Citibanamex commercial customers. The consumer and small business products will be distributed under Chubb’s well-known Mexican brand, ABA Productos. Citibanamex and Chubb expect to commence distribution in early 2019.
The agreement is part of Citi’s emphasis on expanding access to best-in-class products and offerings, complementing the life insurance products offered by Citibanamex Seguros. Citibanamex is one of Mexico’s premier financial institutions with top brand recognition and a vast retail banking network of approximately 1,500 branches and approximately 9,000 automated teller machines. Citi is investing $1 billion to make its Mexican operations the leading digital and data-driven “Bank of the Future” by 2020.
As the world’s largest publicly traded P&C insurance company and the largest commercial insurer in the U.S., Chubb brings global insurance expertise to its local operations in 54 countries. With over 60 offices across the country, Chubb Seguros México is the second-largest P&C and auto insurance company in Mexico and is recognized for its excellent customer service and ability to promptly support its customers in the event of an accident or loss.
“In Citibanamex, Chubb gains a bancassurance partner that is a leader in its market, has excellent brand recognition, deep customer relationships, and a well-deserved reputation for high-quality products and services,” said Marcos Gunn, Division President, Northern Latin America and Chief Operating Officer of Latin America for Chubb. “This exclusive long-term distribution agreement will provide an excellent opportunity for Chubb to add to its already substantial operations in Mexico. We’re pleased to be Citibanamex’s partner in offering innovative insurance products and outstanding customer service to their large base of individual and commercial customers as the bank continues to make substantial investments in smart branches and digital banking. This alliance is also based on the commitment of both institutions to the development and future of Mexico.”
“This agreement demonstrates Citibanamex’s strong commitment to providing our clients with access to top quality products and services,” said Ernesto Torres Cantú, CEO of Citibanamex. “Chubb is an outstanding partner and we know that our clients will benefit from Chubb’s expertise, market-leading position and innovative products. The agreement is another example of the enhancements we continue to make across our Citibanamex franchise to better serve clients.”