In the Brazilian market, where large upfront payments are the norm, Zurich Insurance Group announced that its Brazilian subsidiary Zurich Minas Brasil Seguros S.A. has expanded its client base.

Zurich Minas Brasil Seguros S.A. now has an exclusive 8 year distribution agreement with Via Varejo S.A. for the sale of extended warranty insurance products through almost 1,000 stores in the Casas Bahia and Ponto Frio branded store networks of Via Varejo.

Zurich reported that is has agreed to pay BRL 850 million (approximately USD $350 million) under the distribution agreement to Via Varejo for channel exclusivity and commission advancement and expects to generate a premium volume in excess of BRL 1.3 billion (approximately USD $530 million) in the first year.

Full Release from Zurich:  http://www.zurich.com/en/media/news-releases/2014/2014-1001-01