Liberty Mutual Insurance, an American global insurer, is set to acquire Mexican surety company Primero Fianzas from private investor group Grupo Valores Operativos Monterrey.
Terms of the deal, which is subject to the receipt of regulatory approval, have not been disclosed.
Primero Fianzas, based in Mexico City, wrote gross written premiums of more than $33m in 2012, primarily in the administrative and credit bond segments. The company operates through 11 offices writing surety business in all Mexican states.
The acquisition complements Liberty Mutual Insurance’s international presence in 28 countries across Latin America, Europe, and Asia through its Global Specialty and International business units.
It also allows Liberty Mutual Surety, a business unit of Liberty Mutual’s Global Specialty strategic business unit, to tap into the Mexico’s surety market.
Liberty Mutual Global Specialty president Chris Peirce said, "We believe Primero Fianzas provides an attractive platform for investing in and expanding our global surety and insurance capabilities in the growing Mexican market.
"Primero has strong market presence and a record of profitable growth. Its excellent agent and customer relationships complement Liberty Mutual Surety’s significant underwriting capacity and global expertise, and further solidify our leading North American surety presence."
Liberty Mutual Insurance is one of the major property and casualty insurer in Venezuela, Colombia, and is among the leading property and casualty companies in Brazil and Chile.
The company offers insurance products and services, including personal automobile, homeowners, workers compensation, property, commercial automobile, and it employs more than 50,000 people across its 900 offices worldwide.