Suramericana, an insurance subsidiary of Grupo SURA, has signed an agreement with RSA Insurance Group to acquire its operations in Latin America (RSA Latin America), for around £403m in cash.
RSA Latin America is a pan-regional insurance platform, which carries out operations in Chile, Mexico, Colombia, Uruguay, Brazil and Argentina.
RSA Group chief executive Stephen Hester said: "We are pleased to announce the disposal of our Latin American businesses to Suramericana.
"With RSA’s focus on its largest markets in the UK & Ireland, Scandinavia and Canada, it has become increasingly clear to us that RSA is no longer the best strategic owner of these businesses."
The acquired business includes total assets of about £1,336m and net tangible assets of £258m, as of 31 December 2014.
It reported net written premiums of around £333m with a post-tax profit of £9m in the first half of this year.
Suramericana CEO Gonzalo Alberto said: "This transaction represents a unique opportunity to expand our presence across the fast-growing Latin American markets."
Subject to regulatory approvals, the deal is expected to be completed by the end of 2016.
In August this year, Zurich Insurance Group offered around £5.6bn to acquire British insurer RSA Insurance Group.
With around 10 million customers, Suramericana is claimed to be one of the leading insurance groups in Colombia and Central America. It offers insurance solutions in both property and casualty and life insurance segments.
RSA is a multinational insurance group that operates in the UK, Scandinavia, Canada, Ireland, and Latin America, as well as holdscapability to write business in around 140 countries.
Image: Suramericana to acquire RSA’s insurance operations in Latin America. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.