Spain-based Mutua Madrileña has signed an agreement with Empresas Juan Yarur to acquire 40% stake in its Chilean insurance firms Bci Seguros Generales, Bci Seguros Vida and Zenit Seguros, for around €209m.
The acquisitions will help Mutua Madrilena to expand its non-life insurance and life insurance operations in Chile, reduce exposure to domestic market and open new avenues of growth in the insurance business.
Bci Seguros Generales, which is claimed to be the largest non-life insurer in Chile, provides car insurance services. It has a bancassurance agreement in Chile with Banco de Credito e Inversiones.
Bci Seguros Vida provides health insurance services, while Zenith Insurance is specialized in providing services to mass channels and financial institutions.
Mutua Madrilena president Ignacio Garralda said: "The operation meets all the criteria established by the company for its international expansion, entering a stable market and development potential, with the help of a local partner with an excellent corporate reputation and a company that is a leader in the insurance industry."
In addition, the partnership with Empresas Juan Yarur will allow Mutua Madrilena to expand its operations in other Latin American countries, and especially the Pacific Alliance.
Mutua Madrileña Group provides automobile, health and accident insurance services, as well as pension and investment funds services.
Image: Mutua Madrileña office building in Madrid. Photo: courtesy of Jean-Pierre Dalbéra.