Property and casualty insurer ACE has inked a definitive agreement to purchase Fianzas Monterrey in Mexico from New York Life Insurance Company for nearly $285m in cash.

Commenting on the deal, ACE chairman & chief executive officer Evan Greenberg said, "The acquisition of Fianzas Monterrey will allow ACE to diversify its business in Mexico with a highly successful surety business that is recognized for its industry-leading underwriting performance and impressive management team."

"As part of our specialty P&C business, surety is a growth area for ACE, and Mexico is an attractive market with a strong economic outlook," Greenberg added.

According to acquirer, the acquisition of Fianzas Monterrey is complementary to its business in Mexico, which presently includes commercial property and casualty, accident and health, and life insurance operations.

Under the terms of the agreement, the transaction is anticipated to close in the first quarter of 2013, after obtaining the concerned regulatory approvals and satisfying the customary closing conditions.

Headquartered in Mexico City, Fianzas Monterrey which was set up in 1943, is Mexico’s second-largest surety lines company and the third largest in Latin America.

The ACE Group trades in 53 nations around the globe and offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.