Swiss Re to acquire stake in SulAmérica
Swiss Re is set to acquire an 11.1 percent stake in Sul América S.A. from ING Group N.V. and a 3.8 percent stake from members of the Larragoiti family for a total amount of approximately $334 million.
SulAmérica is the largest independent insurance group in Brazil and a provider of health and auto insurance. In addition, the company also offers property, casualty, and life insurance as well as pension, asset management and premium savings bonds products.
"SulAmérica is a well-established and successful multiline insurer in Brazil where we see attractive growth opportunities. We expect our investment in SulAmérica to benefit us not only financially, but also by increasing our proximity to and participation in the Brazilian market,” said Swiss Re's group chief executive officer, Michel Liès.
Swiss Re's group chief strategy officer John Dacey added: "The investment in SulAmérica affirms Swiss Re's strategy to invest in leading insurance franchises in high growth markets."
The transaction between ING and Swiss Re is conditional upon the closing of the restructuring of Sulasapar, the investment vehicle controlled by the Larragoiti family, as announced in February 2013, as well as customary regulatory approval. The transactions between Swiss Re and ING and between Swiss Re and the Larragoiti family are expected to close in the fourth quarter of 2013. Following closing of these transactions, Swiss Re will be the largest investor in SulAmérica after Sulasapar.
