Swiss Re completes 51% acquisition of Confianza

Swiss Re Corporate Solutions has completed the 51 percent acquisition of Compania Aseguradora de Fianzas (Confianza).

The remaining 49 percent stake continues to be held by local shareholders.

Jose Montano, lead analyst at Moody's, said: "Confianza's rating is driven primarily by the company's strong market position in the Colombian surety industry, its solid profitability and its adequate capitalisation metrics.

“In addition, we expect that Swiss Re Corporate Solutions' presence will in time enhance Confianza's business profile, as well as it risk management and strategic oversight."

While Confianza has historically ceded a large percentage of its premiums to international reinsurers, Moody's noted that -- as a consequence of the transaction -- Swiss Re Corporate Solutions may provide Confianza significant reinsurance support allowing the group to retain a greater share of its business and underwriting profits.