French insurer CNP Assurances has signed a BRL7bn ($1.7bn) bancassurance pact with Brazilian lender Caixa Economica Federal.

Under the agreement, the Brazilian lender will market CNP Assurances’s products through it’s over 3000 branches in the country.

Both the firms will set up a joint venture (JV) that will sell CNP’s insurance plans.

Caixa Seguridade – an insurance subsidiary of Caixa – will hold 60% stake, while the remaining 40% will be owned by the French insurance group, Reuters reported.

The deal is expected to be finalised by the end of next year.

The new JV, which is scheduled to commence operations by 2021, will provide life, pension plans and consumer credit life insurance to the customers of the Brazilian state-owned bank.

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The latest deal is the revised version of a year similar deal reached between the companies a year ago.

As per the earlier contract, the JV would have marketed CNP’s insurance plans until 2041 and CNP would have paid BRL4.65bn ($1.1bn) for a contract.

American investment banker Morgan Stanley advised Caixa on the deal, while CNP Assurances is being advised by JP Morgan Chase.