Dutch financial and insurance giant ING Groep announced that it has completed a long-term partnership arrangement with Mexico’s Savia. As previously announced in February, ING will acquire up to a 49 percent stake in a new holding company, which controls Seguros Comercial America (SCA), Mexico’s largest insurer.
The announcement gave details as follows: ” The new holding company will hold up to 84.65 percent of the capital stock of SCA. The increase from the earlier announced 71.6 percent to 84.65 percent is due to other institutional financial investors that will sell their shares to the new holding company. The transaction amount for ING’s 49 percent stake totals $808.8 million. ING’s 49 percent stake in the new holding company will be equivalent to 41.5 percent of the shares of SCA.”
ING also has options, exercisable in the fourth, fifth or sixth year of the agreement, to eventually acquire a majority interest. The transaction is part of ING’s overall strategy to substantially expand its presence and market share in North America.
At the same time, the company confirmed it had finalized the details for its Bancassurance venture with Bital, one of Mexico’s largest retail banks and had acquired a 100 percent interest
in pension fund manager Afore Bital, as previously announced. 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.
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