Mutua Madrileña has taken another step in the internationalization process that began three years ago with a new purchase in Latin America. The entity chaired by Ignacio Garralda has closed the acquisition of 45% of Seguros del Estado, the second largest general insurance company in Colombia. The agreement, whose amount has not transcended, contemplates the option for the Spanish group to reach a controlling interest within four years, in 2023.
The transaction allows Mutua Madrileña, third insurance company in Spain, to move forward in its internationalization, which began in May 2016 with the acquisition of 40% of Chilean insurance company BCI Seguros for 208 million euros, participation that in the first half of next year will rise to 60%. As part of its strategic plan for 2018-2020, Mutua, which aims to expand its geographic diversification, He had been exploring new operations in the Latin American market for some time, specifically in Chile, Colombia, Mexico and Peru, the countries of the so-called Pacific Alliance.
"The purchase of State Insurance allows Mutua Madrileña to open new ways of growth and diversification in the international insurance business," said the company in a statement, detailing that the sale has already been approved by the boards of directors of Mutual and State Insurance and plans to close in the first months of 2020, once authorized by competition bodies and regulators.
Seguros del Estado is the second general insurance company in Colombia with 3.5 million clients, an 11% market share and a premium volume of 359 million euros at the end of 2018, and 91% of its turnover corresponds to the non-life branch. The insurer, which mainly markets auto, health and life policies through 2,100 brokers, 5,000 points of sale, 37 branches of its own in 24 cities in the country, is a leader in the lines of caution and mandatory insurance that vehicles have to hire of that country and that covers only personal damages (SOAT), not material damages in cars, segment in which it has a market share of 31%.
As in the case of BCI Seguros, the alliance with Seguros del Estado contemplates that its current owners, the Mora family, remain in the company's shareholding. In this sense, the purchase and sale agreement includes the possibility that Mutua, if the insurer reaches the expected business figures, expand its participation by over 50% in four years – a specific percentage has not been set – and take control, maintaining the Mora family with a relevant participation but not control.
Mutua Madrileña, which with its growth of the last decade has become the third Spanish insurer and the first in general and health insurance, remains immersed in a policy of geographic and business diversification and insists on its willingness to make more purchases to achieve it . Beyond this international expansion through alliances with local partners in Latin America, Mutua also explores acquisitions in the Spanish market to increase the size of its management company, Mutuactivos, after acquiring 30% of the EDM manager Y 20% of Cygnus.
. (tagsToTranslate) mutual (t) madrilena (t) colombia