) has entered into an agreement with
) for distribution of the N.Y.- based insurer's credit insurance
products through Citigroup's network across 15 markets for a
10-year period. However, financial terms of the deal were
The partnership arrangement will operate in 15 markets covering
Asia, Europe, the Middle East, Africa and Latin America. These
markets include Australia, Argentina, Brazil, Bahrain, Czech
Republic, Egypt, Greece, Indonesia, Malaysia, Philippines,
Poland, Russia, Spain, Thailand and the UAE.
Notably, this reflects greater exposure in Asian countries
that are the fastest growing life insurance markets in the world.
This is expected to help both the companies to gain from rising
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Through this deal, MetLife and its affiliates will stand as the
underwriter or reinsurer of credit insurance products catering to
Citigroup's huge client base in the above mentioned markets.
Notably, these comprise Citigroup's retail bank and credit card
This, however, is not the first partnership between Citigroup and
Metlife. Back in Jan 2005, the companies entered into a
distribution agreement for a period of 10 years. As per the
agreement, the insurer's products were sold through certain
channels of Citigroup. Hence the latest agreement that is set to
expire in 2025, further strengthens the business relationship.
With this initiative, not only will Citigroup's client base
benefit from diversified products and services with enhanced
value but the company's global network will get a boost as well.
Citigroup has been lately exercising distribution deals to
strengthen its operations and tap more global opportunities. In
Dec 2013, its division - Citibank, entered into an exclusive deal
with AIA Group Limited for distribution of the Asian life
insurer's products through Citibank's retail branch network
across the Asia-Pacific region. The company expanded its
footprint in this bancassurance deal that will operate for a
Citigroup currently carries a Zacks Rank #4 (Sell). Some
better-ranked major banks worth considering include
Fifth Third Bancorp
), both carrying a Zacks Rank #2 (Buy).