Allianz Mexico is to manage the employee pension plans of four Mexican banks in liquidation. The life insurance deal is the second largest of its kind in Mexican history.
After a two year selection process, Allianz Mexico has been chosen to take over the pension liabilities of four state-owned banks in liquidation: Banco Union, Banca Cremi, Banco Obrero and Banco Oriente.
The agreement, which is expected to extend over a period of 30 years, represents the second largest life insurance deal in Mexican history. It has also generated one-time premiums amounting to some $94 million for Allianz Mexico.
Allianz was chosen in light of its recognized expertise in the field, excellent track record in Mexico and its solvency rating which is the highest in the market, comments Sergio Ghibellini, CEO of Allianz Mexico.
The deal has also improved Allianz to third in Mexico’s Group Life market, with $105 million in gross premiums written in 2004 for this segment.