Citigroup Inc (NYSE:C) Joins Hands With AIA For Life Insurance Sales In Asia-Pacific


Dallas, Texas 12/20/2013 (FINANCIALSTRENDS) – Citigroup Inc (NYSE:C) has announced to join hands with AIA Group Ltd to provide life insurance via the latter’s branch system situated in 11 nations in the Asia Pacific as the US lender diminishes the number of insurance associates in the area.

The contract, which will last for 15 years, will permit AIA to market insurance products to Citigroup’s clients in the zones comprising Hong Kong, China, Australia, Korea, Singapore, India, Malaysia, Thailand, Indonesia, the Philippines as well as Vietnam.

Hong Kong-based AIA Group Ltd is the third biggest insurance firm in the zone in terms of market worth. As Citigroup reinstates 150 separate accords in the Asia-Pacific, the agreement will permit AIA to access holders of more than 34 million individual accounts.

No economic details regarding the contract were revealed however a source told that the transaction, counting commissions and upfront charges, could gather income of around $20 billion.

Mizuho Securities Asia Ltd Analyst Jim Antos stated, “For Citigroup, it’s income without expense — mainly they’re getting an innovative product. They just require the salespeople, and they already have plenty of sales representatives.”

The contract would allow firms to tap a area which has not been chiefly penetrated by insurance companies. In its declaration, Citigroup said just 2.6% of the inhabitants in the Asia Pacific area have life insurance, under the 3.65% in the United States and the 8.44% in the US based on facts from Swiss Re.

Company sells PE division to abide by Volcker Rule

Citigroup Inc (NYSE:C) has divested its PE division Metalmark Capital with the intention to meet the needs of the Volcker Rule.

Citigroup Inc : Philadelphia Fed Biz Index Zooms

Mid-Atlantic makers are flourishing at a modest speed this month, as per a report rolled out by the Federal Reserve Bank of Philadelphia.

The Philadelphia Fed’s index of general biz action covering the regional factory division augmented to 7.0 in the month of December.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.