Global property and casualty insurer ACE has inked a definitive agreement with Ally Financial to acquire ABA Seguros in Mexico for nearly $865m in a cash transaction.
Commenting on the deal, ACE chairman and chief executive officer Evan Greenberg said that the acquisition will help the company to further strengthen its footprint in the Mexican market.
The purchase is expected to complete during the first six months of 2013, pending regulatory approval and customary closing conditions.
The company has already been trading in the country through its subsidiary ACE Seguros, which offers industrial, commercial and personal accident underwriting services.
Founded in 1958, the Mexican insurance company being acquired delivers insurance products to auto, homeowners and small business coverages, through more than 30 sales offices across the region.
The acquirer trades in 53 nations across the globe and provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.
Ace has recently completed the acquisition of Fianzas Monterrey, a surety writer in Mexico.