Mapfre buys Mexican life insurer in LatAm expansion move
Re/insurer Mapfre is to acquire a majority stake in a Mexican life insurance company as it looks to boost its portfolio and presence in Latin America.
Mapfre will buy 94% of shares of Insignia Life, and jointly develop a range of life products to boost its growth in the Mexican market.
The price of the operation amounts to 1.6 billion Mexican pesos, equivalent to approximately €86 million at the current exchange rate. An additional variable price has also been agreed depending on the achievement of objectives.
Insignia Life has been operating in the country since 2008, and currently serves over two million customers. It currently has a portfolio worth €105 million, Mapfre said.
As part of the agreement, Insignia Life will continue operating as an independent brand. The company’s current management team, led by its chairman, Isaac Zetune, and its general manager, Antonio Fernández, will continue to manage the company in this new stage. These executives will also continue to hold 6% of the shares of Insignia Life.
The closing of the operation is subject to authorisation by the regulators of the Mexican market.
Jesús Martínez Castellanos, Mapfre CEO in LatAm, said: “For Mapfre, this operation is the demonstration of our full confidence in the Mexican market, where we have been present for over 30 years, and where we aspire to play a greater role in the future and continue to develop new distribution channels to provide our customers with the best service. Moreover, this investment is part of Mapfre’s strategy in Latin America to achieve further growth in the region’s life portfolio.”
Isaac Zetune, Insignia Life chairman, added: “Insignia Life, alongside Mapfre, will expand and become more powerful, with a solid financial backing that will allow it to strengthen its growth and broaden its coverage and territorial presence. Our channel of promoters and agents has proven to be the road to success, and we will continue to underpin growth in the same way, meaning we will continue to be by agents for agents. We are determined to have a high performance and work with the best practices and technologies that exist, meeting our obligations without any excuses.”
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