Insurers vie for lucrative Asian distribution deal with Citi

|By:, SA News Editor

Metlife (MET), Prudential (PUK) and Manulife (MFC) are among five insurers bidding to form a bancassurance distribution partnership with Citigroup (C) in 14 Asian markets in a deal that could generate over $10B of revenue over 15 years.

The winning insurer will make an exclusivity payment of $1.5-2B to Citigroup and split the sales with the U.S. bank. In return, the insurer will gain access to Citigroup's 600 branches and more than 34M consumer accounts.

Citigroup is likely to choose just one firm to work with, although there is a small chance it could choose two.

The other competing insurers are AIA Group (AAIGF) and FWD Group.