Brazil’s Wiz to invest US$116 million in joint venture with BRB

RIO DE JANEIRO, BRAZIL – Wiz Soluções has signed a contract to offer over-the-counter insurance products at Banco de Brasília (BRB). The agreement had been disclosed in April, but at the time the amount had not been revealed.

The two companies will create a new company for trading insurance, consortia, capitalization bonds, and private pension plans, with exclusivity for 20 years. It will consist of an omni-channel operation: in the bank’s distribution channels, through banking correspondents, partner network agents, remote and digital operations.

Now Wiz announced it will invest approximately R$585 (US$116) million to hold 50.1% of the joint venture shares, have the assignment of assets and take over BRB’s product offering operation.

The amount will be paid by a cash installment, 3 fixed and 3 variable annual installment (according to the net profit calculation in fiscal years) in 2023, 2025 and 2026.

“This bancassurance model agreement, our core business, is another step in the diversification strategy of the company’s business units, by building partnerships with channels with high profitability potential,” said Wiz Soluções’ CEO Heverton Peixoto in a statement.

“This partnership is fundamental to expand relationships and generate value for our customers. Insurance products consolidate our strategy of being a complete bank. They are profitable and build loyalty,” explains BRB’s president Paulo Henrique Costa.

Source: Valor