Royal & SunAlliance insurance group has acquired Chile's leading general insurance business Cruz del Sur and its Argentinean sister company for a combined total of $119 million.

The acquisition makes Royal and SunAlliance Chile’s largest general insurance company with a 22% market share and continues its stated aim to strengthen its presence in South America.

Simon Lee, chief executive of Royal & SunAlliance International Businesses, said, We have developed a strong Latin American portfolio which has been built through a combination of organic growth and acquisitions. In Chile it creates a powerful and dynamic market leader whilst in Argentina the transaction further extends our geographic reach.