Abanca and Crédit Agricole join forces to operate together in general insurance

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Abanca has completed the process of selecting an exclusive partner for the sale of general insurance. The entity chaired by Juan Carlos Escoger has signed an alliance with the French Crédit Agricole by which both groups will create a joint insurer for the distribution of non-life policies, that is, automobile, home and multi-risk insurance, among others.

The new company, called Abanca Seguros Generales, will be 50% owned by each bank, instead of the insurance partner, in this case Crédit Agricole, having majority control, as is usual in these operations. In any case, the French group, which will bring its experience in the design of policies, will appoint the CEO of the company, while the main contribution of Abanca will be its network of offices and other channels through which the insurance will be sold. .

The Galician entity had been looking for a bancassurance partner for the distribution of non-life policies for less than a year, a field in which it now operates through agreements with several insurers, including Caser, Allianz, AXA, Pelayo, Liberty and Sanitas. The exclusive agreement with Crédit Agricole will not mean the immediate termination of these other agreements, but the group will try to carry all the new subscription to this alliance.

Abanca and Crédit Agricole are confident that the agreement, signed 30 years in the future, will generate around 1.300 million euros in a term of about 10 years. The Galician entity sees in the distribution of insurance a possibility to raise revenues in a context of low interest rates, so that it has defined this activity as strategic, in line with the rest of the sector. In this sense, the management of Abanca trusts in raising the weight of insurance in its income from 18% to 30% approximately. .

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