Hartford Life, a leader in retirement funding in the United States, has reached an agreement with Seguros DFI and Fianzas DFI of Mexico City to acquire a controlling interest in the two companies and sell life insurance and related products in Mexico.
Seguros DFI, a two-year-old company that specializes in credit life insurance and cash accumulation products, will become Hartford Seguros, and Fianzas DFI, which utilizes trust arrangements for its life insurance coverages, will become Hartford Fianzas. Financial terms of the transaction were not disclosed.Guillermo De Velasco, president of DFI, said the companies will focus on unattended market niches and emerging market segments in Mexico.
“Our approach until now has enabled us to establish ourselves in a few key markets. Our association with Hartford Life will give us the financial capital and market experience to grow our current business and expand into new opportunities.”
The transaction rounds out Hartford Life’s presence in the three largest markets in Latin America — Brazil, Argentina and Mexico, which represent approximately 70 percent of the population of Latin America. In Brazil, Hartford Life has a joint venture with Grupo Icatu, that nation’s third largest investment bank, to offer life insurance, private pension plans, and capitalization contracts, which is a life insurance and savings product.
Hartford Life sells individual and group term life, credit life and fixed annuities in Argentina through its joint venture with Banco de Galicia; that venture is the second largest group life insurance company and the seventh largest individual life insurer. Hartford Seguros and Hartford Fianzas are expected to employ approximately 50 people in their offices in Mexico City.
De Velasco and Juan Ignacio Alvarez will lead the operation. Alvarez noted that the recent privatization of the pension system in Mexico has created a need among citizens to save for their future goals, including retirement. “As our citizens begin to understand the necessity for personal savings, Hartford Seguros and Hartford Fianzas will be able to offer the right insurance and savings products,” Alvarez said.
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