AIA picked to sell products in Citigroup's Asia-Pac branches

[HONG KONG] Citigroup chose AIA Group to sell life insurance through its branch network in 11 Asia-Pacific countries as the US bank slashes the number of insurers it partners with in the region.

The exclusive 15-year agreement allows AIA, the Asia-Pacific region's third-biggest insurer by market value, to sell products to the US bank's customers in countries from China to Australia, Citigroup and AIA said in separate statements yesterday. The partnerships will be set up in each territory next year, Hong Kong-based AIA said.

The deal gives AIA access to holders of more than 34 million individual accounts as New York-based Citigroup replaces about 150 separate agreements across the region. While no financial details were disclosed, a person familiar with the sale told Bloomberg this month the agreement could generate as much as US$20 billion in revenue, including commissions and upfront fees.