Brazil's Bradesco to Form Joint Venture With Swiss Re on High-Risk Area
October 13 2016 - 8:30AM
Dow Jones News
By Rogerio Jelmayer
SAO PAULO--Brazil's retail bank Banco Bradesco SA said Thursday
that it agreed to form a joint venture with Swiss Re AG, one of the
two biggest reinsurers world-wide, to insure high-risk
projects.
Swiss Re will hold a 60% of the joint venture and Bradesco will
control the remaining stake, the Brazilian bank said in a
statement. However, it didn't unveil financial value of the
transaction.
With the deal, the joint venture will be able to explore a
network of 4,600 Bradesco branches across the nation, to sell their
products to the bank's clients, it said.
The deal still must to be approved by the local authorities.
In recent years, Brazilian banks opted to sell part of their
insurance divisions in high-risk areas in order to concentrate in
their core businesses, such as retail bank activity and insurance
for individuals.
In July 2014, Bradesco's local rival, Itau Unibanco Holding
S.A., sold its high-risk insurance unit to U.S. insurance company
ACE Ltd. for a total of 1.5 billion Brazilian reais ($468
million).
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
October 13, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Banco Bradesco (NYSE:BBD)
Historical Stock Chart
From Apr 2024 to May 2024
Banco Bradesco (NYSE:BBD)
Historical Stock Chart
From May 2023 to May 2024
