NEW YORK (TheStreet) -- Itau Unibanco ITUB was gaining 0.2% to $14.30 Monday after selling its insurance unit to ACE.
The Brazilian bank expects a pretax earnings boost of 1.1 billion reais, about $497 million, from the sale. ACE will pay a total of 1.515 reais for the insurance unit. The deal is expected to close in the first quarter of 2015.
The unit specializes in selling insurance to high-risk businesses such as oil and gas and infrastructure companies, according to Reuters.
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"Itau Unibanco Holding SA is a Brazil-based holding active in the banking sector. The Company divides its activities into four segments: Commercial Banking, which offers retail banking and legal entities customers services, among others; Itau BBA, which offers products and wholesale services for companies as well as investment banking activities; Consumer Credit, which provides financial products and services such as checking accounts, auto loans and credit card transactions, among others; Market and Corporation Activity, which provides excess cash management, subordinated debt surplus administration and leads observations on certain treasury activities, among others. The Company operates in Brazil, Argentina, Switzerland, the United States, the United Arab Emirates and China, among others."