Belo Horizonte, Brazil-based insurer Pottencial Seguradora SA bought Cardif do Brasil Seguros e Garantias SA's individual tenant surety portfolio for an undisclosed amount, Valor Econômico reported.
Cardif do Brasil, which is a part of France's BNP Paribas SA, issued product premiums worth 4.6 million Brazilian reais, between January and July, data by the country's insurance superintendency Susep shows. In 2018, the subsidiary of the French insurer issued 17.5 million reais worth of product premiums.
Since the deal's approval by the regulator on Sept. 4, all of Cardif's individual tenant surety contracts have been dealt by Pottencial Seguradora.
According to Pottencial Seguradora's President João Géo Neto, the agreement was the "kick-off to operate in the retail market." Until now, the company had provided surety insurance on rental contracts for companies, but not for individuals.
Pottencial is also seeking opportunities to purchase other portfolios in the individual markets, Géo Neto said, indicating a possibility of selling home insurance.
As of Sept. 19. US$1 was equivalent to 4.14 Brazilian reais.
