Liberty International Holdings Inc., member of the Liberty Mutual Insurance Group, announced the expansion of its presence in Chile by agreeing to acquire an additional insurance company, Compañia de Seguros Generales Penta Security S.A., the fourth largest non-life insurer in Chile.
The transaction is subject to the approval of the insurance regulator, the Superintendencia de Valores y Seguros (SVS) and the procedures established by the Chilean stock market laws, known as public tender offer.
Penta offers a diversified portfolio, including personal and commercial insurance, a business portfolio that matches Liberty Mutual’s portfolio in the region. Liberty has been growing its presence in Chile over the past 10-plus years. Liberty first entered Chile in 2004 with the acquisition of AGF Allianz Chile and subsequently acquired ING Chile in 2005.
Liberty Mutual remains committed to the country and the Latin American region, the company said in a statement, noting that Penta offers a solid opportunity for Liberty Mutual Insurance to continue its expansion and growth in Chile’s USD$3 billion non-life insurance market.
“Liberty Mutual has seen consistent results in Chile, and believes in the future growth it can offer,” said Luis Bonell, president, Liberty International, one of Liberty Mutual’s four strategic business units. “Penta offers a strategic complement to the business in the country and region.”
“The Chilean P&C market reported a compound annual growth rate of 9,3 percent over the past five years,” added Pablo Barahona, chief operating officer, Latin America & Continental Europe, Liberty International. “The strength of the Chilean market provides an environment for growth, and Penta delivered the right opportunity.”
Source: Liberty Mutual Insurance
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