MILAN (Reuters) - Italy's biggest insurer Assicurazioni Generali said its Portuguese arm had agreed a long-term distribution deal with CTT Group, the country's postal services group, while also taking an 8.7% stake in CTT'S banking unit.
Generali said in a statement on Monday its Portuguese unit Tranquilidade would invest in Banco CTT by subscribing to a 25 million euro ($24.82 million) reserved capital increase.
Following the accord, Tranquilidade's life and non-life insurance products will be distributed by CTT and by Banco CTT, with a five-year exclusivity period that can be renewed.
Tranquilidade's premiums stood at 1.1 billion euros at the end of 2021, virtually all in its non-life business.
"Through this agreement ... Tranquilidade will reach new clients, particularly in the life segment, while considerably increasing its overall premiums," Generali said in a statement.
Launched in 2016, Banco CTT serves 600,000 customers both online and through a network of more than 200 outlets. It manages 2 billion euros in clients' deposits.
($1 = 1.0073 euros)
(Reporting by Valentina Za, Editing by Louise Heavens)