Citi has agreed to sell the right to distribute insurance products through its branch network to Hong Kong-headquartered AIA Group in 11 markets across the Asia-Pacific region, it said Thursday.
AIA paid Citi an upfront fee of over $1 billion for the distribution rights and the US bank is likely to garner billions of dollars from its share of commissions from the partnership, which is valid for 15 years, according to a person familiar with the matter.
The sale coincides with a surge of interest from global insurers in selling their products to Asia’s fast-growing middle class. North American, European and...
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