Debevoise, Linklaters on $4 Billion Bancassurance Deal
Debevoise & Plimpton and Linklaters have advised on a $4 billion insurance distribution deal between Hong Kong's AIA Group Ltd. and New York-based retail lender Citibank N.A.
Such a deal between a bank and an insurer is called a bancassurance partnership. The agreement allows AIA to sell its insurance products at Citibank locations in 11 Asia Pacific markets, including China, India, Australia and a number of Southeast Asian countries.
The distribution agreement, which takes effect next month, lasts for 15 years. While financial terms were not disclosed, the Wall Street Journal citied sources familiar with the matter who said the deal was worth more than $4 billion over its decade and a half lifespan.
Citibank parent Citigroup Inc. is using the deal in order to take advantage of the rising demand for basic life insurance and savings products among Asia’s growing middle classes, the newspaper said.
Debevoise Hong Kong partner E. Drew Dutton and London partner Richard Ward acted for AIA on the deal.
Linklaters Hong Kong partner Matthew Middleditch and London partner Nemone Franks advised Citibank.