Holland’s ING Group announced that it had agreed to acquire a 39.7 percent interest in a subsidiary of Mexico’s Savia Group, which owns 71.6 percent of Seguros Comercial America (SCA). With a 27 percent overall market share -18 percent in life and health products and 39 percent in p/c products – SCA is Mexico’s largest insurance company, and has been growing at the rate of 23 percent a year for the last 10 years.
The planned acquisition, which will cost ING $555 million, is part of the company’s strategy aimed at “substantially expanding its presence in the important North American market of Mexico, United States and Canada.” ING also obtained the right to increase its investment to 49 percent in the first year, and may purchase a controlling interest in the company after three years.
The purchase solidifies ING’s presence in the Mexican insurance and financial services sector. It already has a successful bancassurance partnership with Bital, one of Mexico’s largest retail banks, and will soon acquire 100 percent of Afore Bital, Mexico’s fastest growing pension fund.
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