13 Jan, 2021

Sul America replaces CEO; Nubank CFO steps down

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By Ryan Jeffrey Sy


TOP NEWS IN LATIN AMERICAN BANKING & FINANCIAL SERVICES

* Sul América SA CEO Gabriel Portella Fagundes Filho will step down effective March 29, and will be replaced by Ricardo Bottas Dourado dos Santos, the Brazilian insurer's vice president of control and investor relations officer, after a transition period.

* The CFO of Brazilian digital bank Nu Pagamentos SA, Marcelo Kopel, resigned after a year in office for family reasons, Brazil Journal reported. Guilherme Lago was named interim CFO.

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➤ In ESG era, 'hunker down, hope it will pass' no longer a viable CEO strategy

Last week's riots in Washington, D.C., were further evidence that expectations of business leaders in times of social unrest are rapidly changing and inaction is less of an option as the ESG movement gains traction.

➤ Insurance broker M&A activity ticks up YOY in FY'20; underwriter deals slow

There were a total of 754 insurance broker deals announced in 2020, compared to 744 in 2019, an S&P Global Market Intelligence analysis found. In the underwriting space, there were 151 M&A transactions announced in 2020, down from 165 in 2019.

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BANKING

* Caixa Econômica Federal CEO Pedro Guimarães said in a speech that the Brazilian bank's net profit in 2021 should break a new record, adding that the bank's default rate is at its lowest in its 160 years of operation, Valor Econômico reported.

* Brazil's Itaú Unibanco Holding SA priced an offering of Tier 2 subordinated 10-year notes worth $500 million at 99.671%, with a yield to investors of 3.95% for the issuance. The Brazilian bank will issue the bonds on Jan. 15, at a fixed rate of 3.875% for five years and three months from the issuance date. Afterward, the rate will be recalculated based on the U.S. Treasury rate.

FINANCIAL SERVICES

* Brazilian investment platform Easynvest - Título Corretora de Valores SA purchased Vérios, an automated investment manager, for an undisclosed sum, Valor Econômico reported. Vérios is expected to add 400 million reais in AUM to Easynvest, which already has 25 billion reais under its custody.

POLICY AND REGULATION

* Chile's CMF financial markets commission will launch a public consultation on the implementation of the IFRS 17 accounting standard aimed at "modernizing" regulations for technical reserves at insurance companies.

INDUSTRY NEWS

* Brazil's IPCA consumer price index recorded inflation of 4.52%, the highest since 2016, according to figures from national statistics agency IBGE. The figure was up from 4.31% in 2019.

MARKETS

Click here for a summary of indexes on the MI platform.

Pablo Jiménez Arandia contributed to this report.

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