BGEO's Aldagi signs retail agreement with Credo Bank

BGEO Group announced on Thursday that its property and casualty insurance subsidiary, JSC Aldagi, has signed a three-year partnership agreement with JSC Credo Bank.

The FTSE 250 company said Credo Bank was originally established as a microfinance organisation in 2007, and obtained a banking license in March last year.

It has a large network of branches across Georgia, and provides financial services to micro, small and medium-sized businesses, with specific expertise in providing financial services to rural customers.

As part of the partnership agreement, Aldagi will have rights to offer its retail insurance products to the bank's clients, in exchange for a commission fee based on the premium of each underwritten insurance policy.

The partnership agreement was described as a continuation of an already-established successful relationship between Aldagi and Credo Bank.

“I am pleased to extend this partnership with one of our strategic partners, Credo Bank, which will enable us to continue offering a wide range of retail insurance products through a diversified multi-channel distribution network and strengthen our presence in the fast-emerging retail insurance segment,” said Aldagi CEO Giorgi Baratashvili.

Irakli Gilauri, BGEO CEO, said he was “delighted” to see Aldagi sign another partnership agreement with a financial institution, and successfully capture opportunities offered by the proposed demerger of the group.

“The company is aggressively implementing its strategy to tap Georgia's underpenetrated retail insurance segment,” Gilauri added.