Banco Bradesco sells high-yield credit business to Swiss Re

Brazilian bank Bradesco announced the sale of its high-yield credit business, operating under subsidiary Bradesco Seguros, to Swiss Re on 13 October 2016 (Valor, Isto é Dinheiro). The bank did not disclose the value of the transaction. However, analysts estimate the value of the business to be around US$230 million. Bradesco Seguros will control a 40 percent share of Swiss Re Corporate Solutions Brasil. Amidst Brazil’s deepest recession and competing banks already shifting their focus towards lower-risk credit products, Bradesco will no longer market high-yield (high-risk) products in Brazil.