Falabella enters into 15-year strategic alliance for bancassurance in Chile and Peru

Cuatrecasas has advised Falabella on entering into a 15-year strategic alliance to develop the bancassurance business; in Chile with MetLife (for life insurance) and BNP Paribas Cardif (general insurance), and in Peru with Pacífico Compañía de Seguros, a Credicorp Group company.

The deal will enable Falabella—one of the largest companies in Latin America, operating in Chile, Colombia, Mexico and Peru—, and the above insurers, to make investments to provide clients with the best digital service and develop new products, strengthening its portfolio in the market and its value proposition to over 15 million of its clients in Chile and Peru.

The business is expected to produce over $3.7 billion in premiums over the period considered. Speaking about the deal, Corporate and M&A partner Josefina Yávar at the firm’s Santiago office highlights: “This is an iconic deal for Falabella, as it is the first time that it enters the bancassurance business—simultaneously in two countries with world-class insurance companies—allowing Falabella to unlock its full potential to improve the range of products for its clients.”

The advisory team for this deal was led by Josefina Yávar, with Roberto Guerrero, Ruth Duque, Fernando Mínguez, Isidora Opazo, Francisca Levín, Kiomi Osorio, Juan Pablo Porto, Rodrigo Stein, José Miguel Gazitúa, Giorgio Balza, Isidora Campos, José Lagos and Stephanie Torres.

Falabella in-house lawyers Felipe Rivera (head of legal affairs and governance) and Alejandra Rodríguez (senior lawyer) also actively participated in the deal.